September 22nd, 2009
Europe’s two major telecom players France Telecom and Deutsche Telekom have recently announced that they are planning to merge their UK offices into a single major unit. However, analysts say that this move, which has come as a great surprise to all, will not be as simple as it sounds.
Analysts like Analysys Mason claim that this merger will lead to the merged company being the biggest and possibly the best broadband provider in the UK, outdoing players like O2 and Vodafone. This market monopoly is something that will definitely not go down very well with the supervisory body. In fact, the regulatory authorities are strictly against such mergers because they feel that they will ultimately reduce competition in the market. Hence, there is no assurance that this merger will be approved by the body. However, analysts also state that in case this merger is approved, it will be accompanied by a list of conditions that the merged company will need to fulfil, and this may include provision for better rural broadband.
Mason also stated that mergers have been very common in Europe, with Austria and the Netherlands witnessing some major mergers that have reduced the number of providers in these nations to four and three respectively. The UK will also witness its share of mergers, possibly reducing the number of providers to three in the near future. However, Mason has added that a merger between giants like O2 and Vodafone will not be allowed to happen.
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Entry Filed under: Best Technology Resources, Consumer Market, Great Telecommunication Tips
