HomeBusinessEurope needs telecoms M&A to compete globally, Telenor and Vodafone say

Europe needs telecoms M&A to compete globally, Telenor and Vodafone say

OSLO/LONDON :Britain’s Vodafone and Norway’s Telenor urged policymakers on Wednesday to permit European cell operators to merge and spend extra on networks to hold tempo with friends within the United States and Asia.

European telecoms corporations face a invoice of up to 300 billion euros ($340 billion) to roll out tremendous quick 5G throughout the continent, a process made tougher by regulators demanding a number of operators compete in every market to hold shopper payments low.

Vodafone CEO Nick Read mentioned COVID-19, and the necessity for dependable, quick networks, had centered the minds of regulators, who had realised the worth of funding in the course of the pandemic.

“COVID has really opened the eyes of policymakers to say ‘Have we got this right?’,” Read informed reporters after Vodafone revealed quarterly outcomes.

“And I argue there needs to be a new balance (…) Of course we want competition. But at the same time, we need to encourage investment in next generation infrastructure to remain globally competitive.”

While there are three principal telecom gamers within the United States – AT&T, Verizon and T-Mobile – there are round 100 in Europe.

Telenor CEO Sigve Brekke agreed.

“The European Commission needs to adopt a different view here, which allows for consolidation in the European context, or we will become more and more marginalised compared to other parts of the world,” he informed Reuters after Telenor posted below-forecast fourth-quarter earnings.

Telenor has 172 million subscribers throughout Asia and the Nordic international locations. From his firm’s perspective, consolidation was significantly crucial in fragmented markets in Denmark and Sweden, Brekke mentioned.

“Especially in Denmark, the state of competition isn’t sustainable, and it needs to be consolidated. We have tried it before but weren’t allowed to,” he mentioned.

Vodafone was pursuing mergers with rivals in a number of European markets, Read mentioned, itemizing Spain, Italy, Portugal and Britain.

“We are active on a number of fronts and we are seeing good engagement from our counterparties which confirms that we have a series of potential opportunities to shape the business with stronger assets in healthier markets,” he mentioned.

($1 = 0.8834 euros)

(Writing by Gwladys Fouche in ParisEditing by Mark Potter)

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