EU: Wireless operator group calls for merger leniency

A group representing the interests of mobile operators across the world is calling on the European Commission to relax its scrutiny against mergers in the industry, say reports.

The GSMA announced Monday that it is calling on the EU to consider investment incentives that result from wireless mergers, rather than focusing on merely short-term effects of such deal. Director general of the GSMA, Anne Bouverot, said wireless consolidation “can boost investment in next-generation mobile infrastructure and delivery of mobile broadband to rural areas.”

The GSMA pointed to a study it commissioned, which found little evidence that four-player wireless markets result in lower prices for consumers than three-player markets.

Further, the group argued, consolidation can lead to stronger spectrum performance and cost effectiveness.

While the group acknowledged that the Commission has softened its position against wireless mergers – signaled by recent merger clearances in Germany, Ireland and Austria – the GSMA said the authority must relax the strict conditions placed on such mergers.

Full content: Total Telecom

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