AT&T considering expansion into Europe

January 17, 2013
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    AT&T
    It seems that AT&T is no longer content with sticking to only the U.S. market. According to a new report from the Wall Street Journal, AT&T may be looking to expand outside of the United States and into Europe.

    The publication claims that people familiar with AT&T say that the carrier is considering the move in order to “best escape constraints on growth at home by getting into a new wireless market where it can upgrade technology and roll out more lucrative pricing strategies”.

    The bottom-line is that AT&T has just a few U.S. competitors and has limited room to grow at home. They attempted to push forward in 2011 by buying out T-Mobile, but as we all know things ended in failure after the merger was essentially shot down by Department of Justice.

    In contrast, the European market has more than a 100 carriers across the EU, and twenty-seven national telecom regulators. This leaves AT&T with plenty of potential growth room. The move is also very risky, with Europe being a highly competitive market that could prove very hard to break into for AT&T.

    So when could such push be coming?

    At the moment, AT&T is simply shopping around and studying targets that it could potentially buy or merge with in order to make the expansion effort happen.

    The Journal indicates that AT&T is specifically interested in European markets such as Germany, the Netherlands or the UK. Supposedly, AT&T even has its eyes on a few different carriers including Netherlands-based Royal KPN and UK-based Everything Everywhere (which is a joint venture of Deutsche Telekon and France Telecom).

    If they do intend to go beyond shopping, the Journal suggests that a deal with a European carrier could in fact come before the end of the year.

    What do you think, is expanding into Europe a wise move on AT&T’s part or should they stay focused on the U.S. market instead?

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    Comments

    • http://www.facebook.com/bella.pease.75 Bella Pease

      Can’t wait for that great AT&T service in Europe, they should sweeten the deal with a free AR-15 and BBQ ribs for all new subscribers.

    • Ugo Marceau

      Going to be a shock to them. Here in France, we have way sweeter deals than the US.
      Personally I have: 20€/month (27$) I get unlimited calls, text and data. Also, no contract, I can leave when I want. No subsidized phone but when you see the Nexus phone prices why would you need it ? Also no 4G yet but that shouldn’t be long now.
      But hey, if they adapt their prices and set up 4G/LTE I’m all for it !

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