The 2014 edition of "The Economics of Telecoms" report by Arthur D. Little highlights the key challenges facing the telecom sector in Europe. The report notes that usage of telecom services is increasing, but is not yet monetized. Prices in Europe are among the lowest, but telecom revenues are still declining due to intense competition and regulation. The report also notes that OTT services are gaining popularity and have the lead in usage, putting operators at a disadvantage. However, operators have adapted their commercial and operational models to respond to these changes. The report concludes that public authorities in France are aware of the digital challenges and opportunities facing the sector, and a new European governance is being set up with a focus on digital issues. Overall, the report suggests that telecoms are a key driver of the digital transformation of the economy, but significant changes are needed to support investment in the sector.