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Secure Transactions News

Restructuring in the European network operators landscape

Thursday 20 September 2007

Here are a few of these movements:

  • Vodafone (UK) acquired 67% of Hutchinson Essar in India for GBP 5.5 billion (EUR 7.9 billion). Hutchison Essar brought in 30.8 million subscribers.
  • Telefonica (Spain) acquired around 10% of Telecom Italia for EUR 2.3 billion. Telefonica is part of a consortium with Benetton, the Italian banks Mediobanca, Intesa Sanpaolo, the insurance company Generali, which owns 23.6% of Telecom Italia.
  • Deutsche Telekom acquired Orange Netherlands for EUR 1.3 billion.
  • Orange (France) acquired mobile One (Austria) for EUR 1.4 billion.
  • Mobistar (Luxemburg) acquired VOXmobile (Luxemburg) for EUR 80 million. Mobistar is 50.2% owned by Orange (France).
  • Orange (France) acquired a third of Orange Moldova for EUR 103 million.
  • Telenor (Denmark) acquired activities of Tele 2 in Denmark for EUR 112 million.
  • KPN (Belgium) acquired Versatel, Tele 2's subsidiary in Belgium for EUR 95 million.
  • Telia Sonera (Denmark) acquired Debitel Denmark for EUR 143 million.
  • Debitel (Germany) has acquired Talkline (Germany) from Danish group TDC for EUR 560 million.

After this wave of mergers and acquisitions, the ranking for major mobile operators in Europe is the following (figures on March 31st, 2007):

  1. Vodafone, 232 million subscribers
  2. Telefonica, 149 million subscribers
  3. Deutsche Telekom, 109 million subscribers
  4. France Telecom - Orange , 100 million subscribers
  5. Telecom Italia, 60 million subscribers

The ongoing concentration among mobile operators will put them in a better position when negotiating with their suppliers, especially the SIM card industry. The risk for the industry is undoubtedly a higher pressure on ASPs (Average selling prices).