Entries with tag german telecommunications market.

EU Clears Telefónica Purchase of German Carrier

In the latest example of European telecommunications consolidation, EU regulators have approved Telefónica’s bid to purchase Dutch telecommunications company KPN’s German mobile company E-Plus for €8.6 billion ($11.6 billion). The new company will be Germany's largest mobile operator by customers with a 31 percent market share. To gain regulatory approval of its E-Plus purchase and address concerns about possible excessive market dominance, Telefónica agreed to sell some of its 2.1- and 2.6-GHz radio spectrum and rent its 4G network capacity to other mobile virtual network operators. Market analysts say the purchase could encourage similar deals under discussion in France, Italy, and Spain. The market in Europe is rapidly consolidating as telecommunications companies try to reverse declining revenues and improve their infrastructures. (Reuters)(The New York Times)

EU Approves Irish Mobile Deal

The European Union has cleared Hutchison Whampoa, a Hong Kong-based telecommunications firm, to move forward with its planned $1 billion purchase of Telefónica’s Irish mobile-communications operation. The EU’s approval was contingent on Hutchison Whampoa selling 30 percent of the newly-formed company’s networking capacity to two mobile virtual-network operators, which are companies that use other firms’ networking infrastructures to offer services. Hutchison Whampoa must also continue to participate in a network-sharing agreement with Irish telecommunications provider Eircom. Hutchison Whampoa, which already operates in six European countries, is expanding its holdings in the region. Regulators have been closely monitoring the European telecommunications market in recent months given ongoing consumer concern about consolidation causing rate increases. The EU’s approval of the Hutchison Whampoa deal could clear the way for Telefónica to enter the German market based on its divestiture of this unit. (Reuters)(Businessweek)

Telefónica Proposes Changes to Secure German Mobile Company

Telefónica, the Spanish telecommunications firm, is offering to lease spectrum and provide network access to its market in order to court favor with European Union officials for its pending $11.59 billion purchase of E-Plus in Germany. This amends its preliminary offer after input from European Commission officials. Regulators are concerned this consolidation will further reduce competition in the German market and have been worried about consolidation throughout the European market. Telefónica says it would lease spectrum above 2 Gigahertz to mobile network operators, which would cover 100 German cities, and would provide access to mobile virtual network operators at wholesale rates. It has also proposed the sale of 10,000 cell sites and 50 retail outlets. Third parties can submit comments through 17 April 2014. A decision is expected by 23 June 2014. Telefónica has not commented on the matter. (Reuters)(Financial Times)

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