The European Commission is reviewing the EU regulatory framework for telecoms. In reforming the framework, and adjudicating on current telecoms mergers, policymakers face a tension between two priorities: promoting international competitiveness and investment, which generally entails market consolidation and incumbent power; and maintaining competition in national markets, which typically involves liberalisation and tough antitrust policies.
With Deutsche Telekom becoming BT's largest shareholder as a result of the latter's EE acquisition, closer ties are likely in coming years.
A full takeover is a possibility after the lapse of the three-year restriction on Deutsche Telekom increasing its 12% BT stake.
This would require a shift in stance from the EU competition authorities, given their misgivings over more modest telecoms concentrations.
