Telecom giants under pressure as demand falls

Vodafone Group Plc, the world's largest mobile-phone company, reduced its sales forecast and Ericsson AB, the biggest maker of wireless networks, posted a 70 percent drop in profit as corporate and consumer spending slowed.

Vodafone dropped as much as 16 percent in London trading, the most in 20 years, and Ericsson slid 10 percent in Stockholm. Newbury, England-based Vodafone said revenue will be "around the bottom" of a forecast range and the Swedish manufacturer reiterated its outlook for "flattish" sales.

Europe's economic slowdown is eating into disposable incomes, denting revenue from services such as wireless calls and limiting infrastructure investments.