Telco M&A Prospects

 |  Includes: DTEGY, KKPNY, T, TEF, VOD
by: Tim Poulus

Never a dull moment in telcoland.

  • Is Telefonica (NYSE:TEF) still hunting (KPN) after all?
  • Is Carphone Warehouse selling out to Vodafone (NASDAQ:VOD)?
  • Will AT&T (NYSE: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?


  • 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.