France: Orange predicts telco earthquake with E-Plus, O2 merger

Orange SA, France’s largest telecommunications provider, said it predicts a major shakeup of Europe’s telco industry should the European Commission clear Telefonica and Royal KPN’s plans to merge their German units.

In a statement, Orange CEO Stephane Richard said a “earthquake” of Europe’s mobile sector would emerge following Telefonica Deutschland Holding’s buyout of KPN’s E-Plus, a move that would reduce the number of carriers in Germany from four to three.

Telefonica Deutschland Holding is operating under the O2 brand.

Richard said Orange would follow suit by looking to consolidate businesses within various EU nations, including Spain and Poland; further, fixed-line buyouts in Belgium and Romania would be considered.

Orange’s reaction to the coming wireless consolidation within Germany comes one week after EU Commissioner Joaquin Almunia said three or four major EU carriers could potentially be sufficient for the market as the EU prepares to overhaul its wireless sector.

Full Content: Bloomberg

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