Over the past 15 years mobile operators have mushroomed all over the globe. Any country has at least 4 mobile operators competing with each other.
With a penetration rate of merely 100% in many countries revenue growth is decreasing and reaching a plateau. On the other hand CAPEX are on the rise to invest in more capacity for the data floods and new network technologies like LTE.
Here are a few recent examples :
- Latin-American operator group America Movil wants to take its stake in Dutch operator KPN from 4.8 per cent to 28 per cent
- Hong Kong’s Hutchison Whampoa is biding to get control of Eircom in Ireland and Orange in Austria
The only way for the industry is consolidation, to get more users to amortize the investments. That’s the reason why big operators are looking with greedy eyes on small MVNOs and MNOs. But this consolidation wave is a strong trend that will last.