Market Volatility in Telecommunications - a persepctive from Moorhouse Consulting

10-Jul-2018

The telecom market is a highly dynamic environment, despite being traditionally regarded as mature with high barriers to entry.

Vodafone has been consolidating its European presence, working on deals with Liberty Global. While TalkTalk has been streamlining its business, ending its mobile offering and disposing of its business customers, BT has embarked on a comprehensive transformation following a 6 per cent decline in its share price after the announcement of its 2017 yearly results[i]. So what does this mean for the UK and European telco markets? Will we see Liberty Global retreat from Europe? What further consolidation will we see?

Consolidation - the Vodafone acquisition

Vodafone’s €18bn deal for Liberty Global’s German and eastern European cable TV operations marks the final operation of Vittorio Colao’s 10-year tenure as CEO. This ensures Vodafone has the largest mobile & fixed-line presence in Europe and the right tools to compete with the market dominating Deutsche Telekom in Germany. He transformed the business from a heavily consumer focused 2G / 3G mobile only provider to a “converged international challenger”, leveraging a multiple product offer to deliver economies of scale.

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