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Telekom Criticises EU Reforms

/in /tarafından

Deutsche Telekom’s leadership has voiced concerns over the European Union’s proposed overhaul of telecommunications regulations, arguing that the changes do not go far enough in reducing regulatory burdens.

Executives stated that the planned reforms introduce additional requirements rather than delivering meaningful deregulation. While the proposal includes measures to extend the duration of radio spectrum usage—seen as beneficial for investment planning—it stops short of introducing new financial obligations for large digital platforms that generate significant network traffic.

Telecom operators have long advocated for mechanisms requiring major technology companies to contribute to infrastructure costs. Instead, the EU has proposed a voluntary cooperation approach.

Company representatives expressed uncertainty over how effectively the reforms will address industry priorities, emphasizing the need for clearer policies that encourage long-term network development.

The discussion reflects ongoing tensions between telecom providers and policymakers as Europe seeks to balance investment incentives with regulatory oversight in its digital infrastructure strategy.

Telefonica Eyes M&A to Drive European Telecom Consolidation, CEO Murtra Says

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Telefonica (TEF.MC) is preparing a bold M&A strategy to reshape Europe’s fragmented telecom market, while offloading assets in Latin America to free up capital, CEO and Executive Chairman Marc Murtra told Reuters. His first strategic plan since taking the helm in January envisions building “titanic European operators” to compete globally in telecoms, AI, and digital infrastructure.

Murtra argues that Europe’s market is too fragmented—with 41 operators serving more than 500,000 customers each, compared with just five in the U.S.—and consolidation is needed for competitiveness. Regulators, long wary of higher prices, may now be more open as geopolitical tensions drive Europe to reinforce its strategic autonomy in defense and critical infrastructure.

To fund acquisitions, Telefonica has already agreed to sell its Argentina and Uruguay units, while exploring sales in Chile, Mexico, and Ecuador, which analysts say could free up €3.6 billion ($4.2B). The group has not commented on reports it may raise additional capital.

Potential M&A targets include Vodafone Spain, Germany’s 1&1, assets in Brazil, or Liberty Global’s 50% stake in Virgin Media O2, according to analysts and dealmakers. Meanwhile, French rivals Orange, Bouygues, and Iliad are rumored to be circling Altice’s SFR, signaling a wave of regional consolidation.

Murtra’s vision also involves a “social contract” with regulators: allow consolidation in exchange for commitments to invest in cybersecurity, AI, and data centers. “Imagine a Europe where the satellite systems, the hyperscalers and artificial intelligence are in the hands of tech bros—and this could happen,” Murtra warned.

Telefonica’s shares have rallied since Murtra’s appointment, though its market cap has halved since 2015, and it remains among Europe’s most shorted stocks. Still, analysts see merit in the plan. Moody’s Carlos Winzer noted that scale is “absolutely fundamental” in telecoms, while investment bankers predict country-level consolidation first, followed by cross-border deals.

If Telefonica succeeds, it could trigger a wave of European telecom M&A, pulling in giants like Orange, Deutsche Telekom, and BT, and redefining the continent’s digital infrastructure landscape.

Deutsche Telekom Teams Up with Nvidia and Brookfield to Build AI Data Centre in Germany

/in /tarafından

Deutsche Telekom is collaborating with Nvidia and Canadian private equity firm Brookfield to develop one of the European Union’s major AI “gigafactories” in North Rhine-Westphalia, Germany, CEO Tim Hoettges announced following the company’s Q2 earnings call.

While negotiations with North Rhine-Westphalia officials are ongoing, no final site decision has been made yet. The company is prioritizing locations with existing infrastructure approvals for electricity and water, aiming for a swift start once the site is confirmed. Hoettges mentioned ongoing discussions with energy provider RWE as part of the process.

Earlier this year, Deutsche Telekom had partnered with SAP, web hosting firm Ionos, and retailer Schwarz for EU data centre bids, though recent reports indicate these companies are now pursuing separate proposals. Hoettges emphasized healthy competition within Germany’s data centre market, dismissing speculation of joining other consortia.

The planned AI data centre aligns with growing efforts to boost European AI infrastructure capacity, with Deutsche Telekom positioning itself alongside key tech and investment partners to capitalize on surging AI demand.