Europe’s four biggest telecommunications companies are in talks to integrate their services in order to better serve European consumers. It has to be emphasized that at this point the preliminary talks are for integration within the EU market, because these companies have a much larger presence outside of the EU than within the continent.
The integration of services for Deutsche Telekom, Telefonica, France Telecom, and Telecom Italia is a matter of economics and scale. It is easy to see the benefits for the consumers, like lower roaming charges, integrated infrastructure within the continent, possible lower costs, and better services for voice and data transmission. Here are a few key benefits.
Single point of contact. For mobile phone manufacturers, there should be no difference whether the European landscape is fragmented or not, but for companies such as Apple, Microsoft and Google — which have to talk to different regulators on the continent — one point of contact is a big benefit. Currently, these companies have to negotiate with European regulators, as well as country regulators on an individual basis. With a single company that covers a big part of Europe, entry into the hardware, and software market would be much easier.
Easier billing and monetization. The picture looks even better for developers who want to charge online games via phone bills. Instead of negotiating with at least four companies, they only need to sign up with one in order to be able to accept payment for game use. Increasingly, it is clear that one of the best and most convenient ways for game players to pay for their games is through the phone bill.
Better technology adoption. In terms of technology, a single company operating with a wide coverage can push for better adoption of 4G technologies. Costs for network integration can also be much lower, as well as lower operating and inter-network costs.
These four telcos may be based in Europe, but their biggest markets are outside of their own countries.
Besides their dominating presence in their home countries, they also have interests and cross-ownership and presence within the other countries in the European Union. It is not a far stretch that any movement towards an integration of this sort will result in cross ownership of the current companies. If government regulators do not allow a single company as a unifying presence, an alternative is to launch a holding company, which will then own the integrated company. In theory, at least, this is likely to be more acceptable to regulators, and should be within anti-trust rules.
With this kind of coverage, regulators will have their work cut out for them. The main barrier to such an implementation is the fear of a monopoly, which would make it harder for the smaller players, like local companies and private startups. Additionally, anti-trust is about not letting any single entity control the market, which unfortunately, a conglomeration like this is bound to have, whether intentionally or not.
Is Europe ready for a unified mobile network?
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They already are all part of an alliance called FreeMove Alliance, however Telefonica bailed out when it bought up o2 back in the early 2000′s.
The goal then was to offer competitive roaming rates and coverage, movement between networks seamlessly, same-services as on native network and instant voice and data roaming billing update.There is no reason they need to consolidate anything.
As you can see here… http://en.wikipedia.org/wiki/FreeMove
If antitrust keeps its eyes wide open this all process could only be positive for european consumers, in every matter. We would suddenly have two big players, counting Vodafone aside it, and some other smaller but strong in their home turf companies might face the same challenge. I am talking of companies as KPN, SFR, Swisscom, Belgacom, TDC, Telenor and TeliaSonera. In fact USA sees four bigger groups sharing the leadership, while South America is practically shared in two, Telefonica (Movistar and Vivo) and America Movíl (Claro) and China three with Mobile, Unicom and Telecom. One big unique trans-european brand made out of the fusion on Telefonica, Orange, T-Mobile and TIM, counting only in its own ground about 275 million (against Vodafone’s 150′s) customers could suddenly become a world major player able to reach any possible development.