TMT and sympathy

21 March 2013 By Quentin Webb

The EU is rightly easing up on the sickly sector. But competition concerns seem likely to prevent an M&A bonanza. Until the “single market” Brussels wants becomes a reality, many local deals will consolidate markets too much. And cross-border ones will lack financial sense.

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European Union leaders backed a shake-up of the bloc’s telecommunications markets at a March 14-15 summit. Telephone companies have pressed states and officials such as Neelie Kroes, the European Commission’s telecoms chief, to take a softer stance on issues such as industry mergers.
The summit’s conclusions said: “the European Council notes the Commission’s intention to report well before October on the state of play and the remaining obstacles to be tackled so as to ensure the completion of a fully functioning Digital Single Market by 2015, as well as concrete measures to establish the single market in Information and Communications Technology as early as possible.”
Kroes’ proposals will be released in June and will be put to a summit of EU leaders in October.
ETNO, the European Telecommunications Network Operators’ Association, said “bold reform” was needed, including “further deregulation to reflect changing market realities and improve incentives for investment, while at the same time allowing for more consolidation to achieve the necessary scale for a sustainable and competitive EU industry”.

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