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Author: Phil Kendall
Publication Date: Jul 24 2013
Pages: 4
Report Type: Insight, Word
Service Providers

Telefónica Leads Next Wave of EU Mobile Operator Consolidation



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Report Summary:

Telefónica’s plans to acquire KPN’s E-Plus represent a bold move for an operator looking to reduce its debt levels. Alongside Hutchison 3G’s acquisitions in Austria and Ireland it shows the continuing focus of Europe’s mobile operators on the value or viability of being a 3rd or 4th player in a market. We believe Hutchison will be involved in further consolidation in the region in the medium term. The combined Telefónica/E-Plus clearly has much greater scale to compete in the mobile market. In particular it will be able to use its spectrum depth to set the 4G LTE agenda. Coming hot on the heels of Vodafone’s planned acquisition of Kabel Deutschland, Deutsche Telekom now finds itself in a dramatically altered telecoms landscape where it will need to work hard to re-establish differentiation for its multi-screen/cloud strategy.

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