In recent times there has been much speculation about the need for consolidation in the European telecommunications industry. However, consolidation has not happened as expected with the market fragmenting instead. This article seeks to explain this phenomenon.
A distinction is made between second and third generation mobile technologies, and the ownership of mobile licences in 41 European countries identified. The ownership footprints of mobile operators are mapped, with patterns of consolidation and fragmentation commented upon.
The results show that, although many mobile operators have been intent on building empires both within and outside Europe, almost all of these operators have been forced to curtail their ambitions. As a consequence, consolidation has not occurred as expected.
It was widely anticipated that mobile operators would use third generation licensing to expand their footprints into new markets. This paper, however, argues that this has not happened and the European market has instead fragmented.
