Further margin pressure is in prospect for European telecom operators in 2011 after France Telecom (FTE.PA) and Portugal Telecom (PTC.LS) (PTC.LS) reported domestic competition eating into last year's profits. Cuts in roaming charges and interconnection fees demanded by regulators cut into revenues in the home markets of both operators in 2010, results released on Thursday showed. Both have sought growth abroad by buying stakes in emerging market operators -- France Telecom in the Middle East and Portugal Telecom in Brazil -- but this hasn't yet been enough to offset their reliance on former domestic monopolies.
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