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UK Telecoms Landscape Could Change Due to Mergers

The telecoms industry in the UK could experience major changes in the near future, in line with the global trend of mergers between international companies. In Austria, the number of operators has gone down from five to four. Similarly, in the Netherlands this number has decreased to three from five. Operators are going in for mergers as this leads to a substantial increase in market share and slowly creates a monopoly where the company with the largest reach automatically assumes the position of a leader (click for best broadband provider).

Recently, with such motives, French Telecom and Deutsche Telekom have created ripples in the industry by announcing the intended merger of their UK operations. Analysts believe that this merger will not be smooth, as the regulating bodies in the UK may not encourage it.

From the consumers’ point of view, such mergers of big operators reduce competition in the market. However, the present merger may be shown the green signal by authorities, but only if the companies involved agree to provide greater broadband coverage to the rural sector. The other two significant operators in the UK, namely O2 and Vodafone, may not be allowed to walk the same road in the interests of consumers.

Analysts however believe that the number of operators in UK will come down slowly but surely, as it has happened in Austria, the Netherlands, and in many other countries of Europe.

This entry was posted on Tuesday, September 22nd, 2009 at 7:51 am and is filed under Shoppers Advice, Telecommunication Resources, The Technology Way. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.