TMT : Consolidation generating some buzz… again

While the telecoms sector remains anaemic with revenue growth rates of 1%-2%, when not negative, and EBITDA growth rates of 2%-4%, the recurrent theme of a much needed consolidation is back in the spotlight . This is something of an old chestnut, having each time been rejected out of hand by the European Commission’s Competition department. The challenges that would be addressed by a consolidation are twofold: (1) fight off the GAFAM . enabling the emergence of European champions in the telecom industry; and (2) generate the synergies needed to fund investments in nascent technologies ( 5G , FTTH , IoT, Cloud, data centres). In coming quarters, the real issue will be whether the recent consolidation of the US mobile market will encourage the European Commission to soften its thus far very dogmatic mindset .