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Momentum towards European telecoms consolidation continues

In Europe the momentum towards telecoms consolidation continues its relentless tectonic (and perhaps Teutonic) course with analysts and senior telco executives of the belief that the German incumbent Deutsche Telekom (DT) will make a bid to buy the UK’s national carrier BT. If this goes on there’ll soon be a few huge de-facto monopoly fixed-line incumbents for one huge European market and meaningful competition will become a thing of the past.

In the States, DT is in deep and detailed negotiations about the merger of T-Mobile USA with the Dish satellite network. Word has it that, when that deal is done and DT finally exits the US market, the German operator is planning to buy BT to form a cross-border behemoth of a carrier with undisguised Pan-European ambitions.

And, of course, spending big money on such a scheme would mean that DT wouldn’t have to return to shareholders any cash from the sale of it its US assets. It would much sooner spend the money on empire building in Europe and wants to do so.

This is happening as Vodafone and Liberty Global negotiate “asset swap’ consolidation that could well result in the emergence a Europe-wide company offering broadband, mobile and pay-TV services together with yet another reduction in competition and subscriber choice.

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Source: Telecom TV

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