The authorization to buy E-Plus (KPN) in Germany by a subsidiary of Telefonica opens up new operations on the Old Continent.
Authorizing the repurchase Germany E-Plus, a subsidiary of Dutch KPN, O2, a subsidiary of Spain's Telefonica, the Commission publishes a kind of guide to good practice to carry out the consolidation on the continent. This ad could also kick off a larger movement in the different EU countries. Consolidation is one of the preferred by the major operators to resume growth solutions. The Old Continent is one of the few regions in the world where industry revenues continue to decline (- 2.8% on average each year by IDATE) despite an explosion of uses.
"In terms of policy and competitive dogma, significant obstacles have now been removed. The market is moving around in Europe to a schema with three network operators, around which revolve actors strengthened, including MVNO "profile, says Tariq Ashraf, an analyst at Bearing Point. This is indeed the pattern that emerges from the last two transactions in Ireland and Germany. In both cases, the return to three operators is offset by the access to the wireless network of the new group to another group award (the cable operator Liberty Global Ireland, the alternative operator Drillisch in Germany). " The authorization of the passage from four to three operators in the largest market on the continent could set a new standard for the rest of Europe, "analysts consider HSBC, in a note published yesterday.
Reconciliations in Italy and Spain
Among the countries involved in future consolidation, in addition to France, figure notably Italy. Already in operation in Austria (with the acquisition of Orange Austria) and Ireland (acquisition of O2), Hutchison China pays close attention to the Italian Wind (owned by Vimpelcom). He could marry his own Three subsidiary, currently number four in the market.
In Spain, it is the mobile operator Yoigo, owned by Scandinavian TeliaSonera group, who became a prime target. Last year, Orange, number three in the market behind Vodafone and Telefonica, had tried in vain to buy it. Orange is also interested in Yoigo, a fixed operator with a mobile MVNO.
Things could finally move to Belgium with a possible merger between the cable operator Telenet and Mobistar mobile operator. If the domestic market is already reduced to three mobile operators, this marriage could still appease the competitive pressure "given the disruptive impact of Telenet in the mobile via its MVNO," said Exane BNP Paribas cabinet.
Remains whether the consolidation moves in preparation enough to stop the price war and straighten the accounts of operators involved. According to analysts at Exane BNP Paribas, this may be the case in France, Italy and Belgium: three countries where rates are relatively low and the market structure would be balanced, with three big players more or less comparable.