Telco M&A Prospects

Never a dull moment in telcoland.

• Is Telefonica (TEF) still hunting (KPN) after all?
• Is Carphone Warehouse selling out to Vodafone (VOD)?
• Will AT&T (T) go international once more? Previously a Telecom Italia bid failed and AT&T is now reverting its attention to Telekom Malaysia's international mobile assets.
• Is Deutsche Telekom (DT) expanding in eastern Europe, bidding for a chunk of Telekom Slovenije?

Observations:

• A KPN deal seems unlikely, but when asked if KPN will be around as an independent company in 10 years time, most people will probably reply 'no'.
• Companies appear to be replicating Telefonica's and Telenor's success abroad. For Deutsche Telekom eastern Europe gains importance, and AT&T may expand into southern Asian mobile markets on the back of a TM International acquisition.
• DT buying into Telekom Slovenije is, in a way, a backdoor entrance into the FTTH market. It is interesting to see how strategies differ across borders: DT has no FTTH strategy at home; KPN fights the incumbent in Belgium; AT&T could be a mobile-only company in Asia; etc. When fighting the incumbent or defending an incumbent operation, words must be chosen carefully, or companies risk being confronted with their own foreign subsidiaries' statements by the regulator.

Comments

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Do you thinl IXP ETF fits the bill in telecom area?.