Telecoms eye end to long cold spell for European deals

[Commentary] Two mergers -- one approved, one still in the works -- do not make a summer in Europe’s telecommunications industry.

The month of July is nevertheless sending hopeful signals that the sector’s long cold spell will give way to warmer weather. At last, Europe is finding a formula to reconcile the twin objectives of consolidation and consumer protection. Compared with their US and Chinese rivals, Europe’s large telecoms companies are compelled by fragmented market conditions to operate with one hand tied behind their back. But a serious attempt to set straight Europe’s cockeyed telecoms industry is in motion. Arguably, it is already irreversible, though not yet far-reaching enough. Europe is filled with more than 100 fixed and mobile operators, most not very big and some not especially profitable. At times, governments treat the sector as little more than a cash silo whose function is to lighten their fiscal burdens in spectrum auctions. Funds for investment in new technology are accordingly less abundant.