EU favours competition over deals in telecoms sector

The European telecoms sector’s hopes for more consolidation took a blow after the European Union’s digital commissioner backed more competition instead of more deals.

In his first significant statement on the telecoms sector, Andrus Ansip said that “axing competition rules is not the answer.” He told an audience of industry executives and analysts that this “would only shift the cost of the networks on to consumers. They would have less choice and higher prices. It would be the opposite of what we want.” It was a stunning rebuke for an industry that had been making the case for in-market consolidation, promising greater investment in next generation networks.