Europe's leading telecoms executives have been falling over themselves to call for more industry consolidation to counter falling prices in the market, and the CEO of Danish operator TDC, Carsten Dilling, is the latest to wade into the debate.
Merger, typically between the No. 3 and No. 4 mobile players, have resulted in incumbents winning greater mobile subscriber market share. However, an easier regulatory environment in Western Europe in the future might lead to more consolidation activity by incumbents, as a means of achieving sustainable margins, cash flow and investor return in large markets.
KPN said it expects Carlos Slim to retain his stake in the Dutch group despite the recent failed attempt by the Mexican billionaire to gain control of KPN via América Móvil.
Telefónica and Telecom Italia are currently looking at various options for their respective businesses in Latin America as the two leading European operators continue to seek ways to reduce debt at the group level.
Germany's competition authority is seeking the right to probe the €8.55 billion ($11.5 billion) deal between Telefónica and KPN that would see the two operators merge their respective German units to create the largest operator by customers and provide a stronger rival to Vodafone Germany and Deutsche Telekom.
Nokia is not considering a deal between the company's Nokia Solutions and Networks (NSN) unit and rival Alcatel-Lucent after gauging the possibilities for a transaction, according to a Wall Street Journal report.
There was some good news for the European telecoms industry this week, with Vodafone unveiling investment plans and French operators slowing their rates of profit decline, although the latest missive from Moody's reminds us that the industry is still in a fairly fragile. Enter the bold predictions from one analyst company that foresees a wave of M&A sweeping Europe and the world in the coming three years.
The Department of Justice's proposed settlement allowing American Airlines and US Airways to merge has sparked speculation that the Obama administration might allow a merger between Sprint and T-Mobile US before the next president takes office. However, there are formidable barriers to such a deal, including the administration's own wireless priorities.
Telecom Italia said it agreed to sell its entire controlling stake in Telecom Argentina to the Fintech Group for a total price of $960 million (€712 million), confirming previous reports that it had received an offer from the investment company owned by Mexican financier David Martinez.
Nokia Solutions and Networks (NSN) will be the biggest and most well-known unit inside Nokia following Microsoft's $7.3 billion deal to buy Nokia's handset business, and NSN CEO Rajeev Suri wants the business to keep growing after years of painful cost cuts. Suri did not rule out acquiring weaker rivals to boost NSN's growth.