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Broadband and telephone customers could lose out if Britain votes to leave the European Union (EU), analysts have warned.

A referendum on whether or not the UK should remain part of the international bloc is being held on June 23rd and the outcome is proving to be hard to predict.

The European Intelligence Unit (EIU) has come out in favour of staying in the EU, as it believes telecoms customers would be disadvantaged by a Brexit, TechWeek Europe reports.

In a new report, the organisation said this is because leaving the EU could trigger a recession, which would in turn hit investment in networks and revenues at telecoms providers.

Estimates from the EIU suggest that telecoms investment would go up by 29 per cent between 2015 and 2020 if Britain stayed in the EU.

By contrast, it has predicted there would be an increase of just 23 per cent if UK voters opted to leave.

The EIU also believes revenues in the telecoms sector would rise by 21 per cent during this time if Britain stays an EU member, compared with only 12 per cent in the event of a Brexit.

Analysts went on to warn that pulling out of the EU could lead to significant political disruption and mean the economy would not grow until 2020 at the earliest.

The EIU said this would lead to customers having less money to spend on services, which would be one contributor to lower revenues in the telecoms sector.

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