ETNO, the European lobby group for incumbent network operators, is working with member companies and external consultants on a proposal for creating a pan-European telecoms market that would enable greater M&A. The industry group also wants to push for…
ETNO, the European lobby group for incumbent network operators, is working with member companies and external consultants on a proposal for creating a pan-European telecoms market that would enable greater M&A. The industry group also wants to push for more in-country consolidation to be allowed.
An ETNO spokesman explained that, following a meeting with European competition commissioner Joaquin Almunia, the association “committed” to preparing such a document.
He said the association, which is based in Brussels, expects to be able to present final recommendations within a few months but said it is too early as yet to draw “preliminary conclusions”.
The spokesperson noted that the focus of the meeting with Almunia was on EC plans, outlined by digital agenda commissioner Neelie Kroes, to create a more united, internationally-competitive telecoms market.
Concerns about the “fragmented” nature of the sector led ETNO to commit itself to preparing a proposal addressing the issue, he said.
Bloomberg cited unidentified sources familiar with the matter as saying ETNO’s proposal will suggest maximum limits for the numbers of operators allowed in each country and push for more mergers to be permitted.
According to the report, ETNO believes individual countries cannot sustain more than three mobile network operators and two-fixed line telcos in the long-term. As such, the association will ask the EC to allow more in-country consolidation.
In a January speech, Kroes outlined a 10-step plan to create a more united European telecoms sector in order to accelerate the roll-out of high-speed broadband.
In an interview with the Financial Times that same month Kroes said the commission is “working on a range of measures to create common and stable conditions across the EU”. She highlighted asset sharing as a means of stimulating competition and investment.
Her comments followed news that executives from EU telcos including Deutsche Telekom, France Telecom, Telecom Italia and Telefonica are looking at how to create a more harmonised European telecoms sector.
Previously, Almunia has indicated that he would be more open to cross-border consolidation than further in-country mergers.
