FT: Europe’s Telco Giants In Talks To Create Pan-European Network

“Europe’s largest mobile network operators are considering pooling their resources to create pan-European network infrastructure, the FT is reporting. Quoting several people familiar with the situation, the paper says discussions to potentially “unite Europe’s fragmented national markets” were prompted by the European Commission — reportedly keen for more radical options to simplify Europe’s mosaic of telecoms markets to fit its economic philosophy of pushing towards a single market.

The idea of a pan-European network emerged at a private meeting between EU competition chief Joaquín Almunia and the bosses of Europe’s biggest telecoms groups, including Deutsche Telekom, France Telecom, Telecom Italia and Telefonica, according to the FT. The paper says industry attendees left the meeting “intent on exploring the idea” of a pan-European network, adding that mobile network operators are frustrated by a “disjointed European market” that’s making it harder for them to compete.

For European telcos, the issue is the complexity of the regional telecoms landscape — with more than 27 telecoms regulators, and more than 100 carriers operating in the region. Doubtless envious eyes look over the pond to the U.S., with one regulator and four main operators, or China with three.

“The operators expressed a deep sense of frustration and agreed to bring constructive ideas of how a European market could work,” the FT quotes one person familiar with the meeting as saying. “Objections won’t come from Europe, they will be from the [EU’s 27 national] regulators.”

We’ve reached out to the office of Joaquín Almunia, and to Telefonica, Deutsche Telekom, France Telecom and Telecom Italia for comment — and will update this story with any response. A spokesman for Telefonica told TechCrunch the company does not comment on rumour and speculation. Update: TechCrunch understands that discussions between Europe’s telcos on network infrastructure pooling have taken place but are at a very preliminary stage….”

Full article