Briefing for CAB Members
Meeting with Telefonica
21 April 2022
SUMMARY
In person meeting requested by
Telefonica.
Meeting: 21 April 2022, 16:00 – 16:45
The purpose of the meeting is to exchange views with the Commission on the
Commission’s approach to EU telecom consolidation and the main differences
between the EU and US telecom markets. Telefonica is currently active in 12
countries (in the EU: Spain, Germany, UK and outside of the EU: Argentina, Brazil,
Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela).
Objective of Telefonica:
o Hear about the Commission’s approach to consolidation in the European
telecom market
Objectives of the Commission:
o Explain that the Commission assesses each transaction on a case-by-case
basis, there is no magic number of operators in any market anywhere in the
EU. Only 2 deals (out of more than 30 transactions) have been prevented from
taking place by the Commission (one prohibition and one abandonment).
o Explain that the Commission always careful y considers the argument that
consolidation would facilitate investment. Merger-specific pro-competitive
efficiencies are taken into account in the merger control framework however
there is limited evidence that higher profits would result in higher rates of
investment, in contrast, we observe that high levels of investment are seen in
competitive markets.
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Basis #: CAB VESTAGER/
Briefing for CAB Members
Meeting with Telefonica
21 April 2022
Contents
The Commission’s Approach to Mobile Mergers ................................................................ 3
Comparison between the EU/US Telecom Markets ........................................................... 4
Telefonica & Portugal Telecom (AT.39839) ...................................................................... 14
Spanish Plans for (Fixed & Mobile) Connectivity Schemes (including measures financed
by the Resilience and Recovery Facility) ........................................................................... 15
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Basis #: CAB VESTAGER/
Briefing for CAB Members
Meeting with Telefonica
21 April 2022
o In the US, according to the 2019 Broadband Deployment Report of the
Federal Communications Commission (updated data not available):
Basic connections: 93.5% of the US population
Speeds of at least 30 Mbps: 91.6% of the US population
Speeds of at least 100 Mbps: 88.5% of the US population
Rural coverage: 73.6% of the US population in rural areas
Mobile broadband coverage:
o In the EU, according to the 2021 DESI report:
4G/LTE: 99% of the EU homes (the average of each operator per
country is 94%)
5G: By the end of August in 2021, 25 of the 27 Member States
had assigned spectrum in the 5G pioneer bands, compared to
16 a year earlier. Germany, Croatia, Denmark, Greece, Finland
and Slovenia assigned more than 90% of spectrum. On the
other hand, Estonia and Poland have not yet assigned any 5G
spectrum (according to the above conditions).
Following the spectrum assignments, 13 Member States started
commercial 5G network deployments by mid-2020. Highest
coverage levels were recorded in the Netherlands and Denmark
(80% of populated areas each), followed by Austria (50%),
Ireland (30%) and Germany (18%).
In 2022, all EU countries have commercial 5G service available
at least in a part of the country. 17 Member States are now
involved in the preparation of twelve 5G cross border corridors
with the aim to stimulate the use of 5G in transport services, in
particular to pave the way for Connected and Automated
Mobility. 50% of households across the EU27 were reached by
at least one 5G network at the end of 2021. (source:
5Gobervatory).
o In the US, according to the 2019 Broadband Deployment Report of the
FCC:
4G/LTE: 99.8% of the US population
5G: In November 2021, the United States has finished the
auction phase of its 3.45 – 3.55 GHz auction. On an international
level, a disagreement between two federal agencies in the
United States has been developing. The Federal Aviation
Authority (FAA) has expressed worries about the potential for
interference between the part of the C-band used in the US for
5G deployment and radio altimeters in aeroplanes. Although the
country’s spectrum regulator the FCC has disputed this claim,
mobile operators have agreed to push back their planned 5G
rollouts. Deployment has resumed in January 2022. The USA has
assigned the most mmWave spectrum: four bands in total,
compared to one in some of the EU and none in China. China
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Basis #: CAB VESTAGER/
Briefing for CAB Members
Meeting with Telefonica
21 April 2022
has nearly 1 million installed 5G base stations: eight times more
than the EU and 18 times more than the USA. (source:
5Gobservatory).
NUMBER OF PLAYERS (RETAIL MOBILE COMPETITION)
Mobile telecommunication services:
o In the EU, based on our calculations:
Operations of mobile operators across the EU:
5 network operators have operations in 6 or more EU
Member States: Vodafone, Deutsche Telekom, Orange,
Hutchison and Telenor;
5 network operators have operations in 3 to 5 EU
Member States: Telia, Tele2, Telekom Austria,
Telefonica and Iliad;
34 network operators have operations in only 1 or
maximum 2 EU Member States, the latter being
Proximus, Elisa, Bite and Digi.Mobil.
Number of operators available to EU consumers (updated data
not available):
61% of EU consumers have the choice between 4
mobile networks or more:1 this is the case in the
countries with the largest population (above 20 million
habitants), with the exception of Germany, where a 4th
mobile network operator plans to launch only in 2023,
and in several mid-sized Member States (population
between 20 million and 2 million);
33% of EU consumers have the choice between 3
mobile networks: this is the case in all the countries
with the smallest population (below 2 million habitants)
and in some mid-sized Member States (population
between 20 million and 2 million).
Number of subscribers in the EU (updated data not available):
Total: 465 million subscribers
Vodafone: 132 million subscribers (29% of total)
Deutsche Telekom: 112 million subscribers (24%)
Orange: 104 million subscribers (22%)
Telefonica: 88 million subscribers (19%)
o In the US, according to the 2018 Consolidated Communications
Marketplace Report of the FCC (updated data not available):
Operations of mobile operators across the US:
1 The figure raises to 66% in the EU and the United Kingdom.
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Basis #: CAB VESTAGER/
Briefing for CAB Members
Meeting with Telefonica
21 April 2022
4 network operators have currently2 operations in al the
US States with their 4G/LTE networks: AT&T, Sprint, T-
Mobile, and Verizon Wireless;
2 network operators have regional operations covering
a number of States, but not the whole land of the US:
U.S. Cellular and C Spire; and
dozens of other network operators mainly cover a
single, often rural, geographic area.
Number of operators available to US consumers: 90% of the US
population is covered by at least 4 4G/LTE networks. This
population is located in the States with the greater population
(California, Texas, Florida) and in the most densely populated
areas.
Number of subscribers :
Total: 440 million subscribers
Verizon Wireless: 154 million subscribers (35%)
AT&T: 150 million subscribers (34%)
T-Mobile: 77 million subscribers (17.5%)
Sprint: 54 million subscribers (12%)
T-Mobile+Sprint: 131 million subscribers (30%)
2 Pending the implementation of the T-Mobile/Sprint merger, which has been cleared by the
Department of Justice and the FCC, subject to remedies which should facilitate the entry of DISH
as fourth operator (see below).
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Basis #: CAB VESTAGER/
Briefing for CAB Members
Meeting with Telefonica
21 April 2022
MERGER CONTROL STATISTICS
In the EU, since 2015 (up until Q1 of 2022), the Commission has reviewed the following
telecom merger cases:
Total: 34 mergers
o 2 were prohibited (or the Commission was set to prohibit it):
The JV between Telia and Telenor in Denmark (abandoned, 2015)
Hutchison’s attempt to acquire O2 in the UK (2016)
o 12 were cleared subject to remedies:
1. Orange’s acquisition of Jazztel (2015)
2. The Belgian JV De Vijver Media between Liberty, Corelio and
W&W (2015)
3. The JV between Hutchison and Vimpelcom in Italy (2016)
4. The JV between Vodafone and Liberty Global in the Netherlands
(2016)
5. Liberty’s acquisition of BASE in Belgium (2016)
6. Hutchison’s acquisition of full control over the Italian JV (2018)
7. Liberty’s acquisition of Ziggo in the Netherlands (2014,
reassessed post-Court annulment in 2018)
8. Vodafone’s acquisition of certain assets of Liberty Global in
Germany, Romania, Hungary and Czechia (2019)
9. Telia’s acquisition of Bonnier Broadcasting (2019)
10. Telecom Italia and Vodafone’s acquisition of the JV INWIT
(2020)
11. Altice, Allianz and Omers’ joint acquisition of Covage (2020)
12. Orange’s acquisition of TKR in Romania (2021)
o 19 were cleared unconditionally:
1. Tele2’s acquisition of TDC in Sweden (2016)
2. Iliad’s purchase of Eircom in Ireland (2018)
3. PPF’s (telecom operator in Czechia and Slovakia) acquisition of
Telenor’s telecoms business in Bulgaria and Hungary (2018)
4. Tele2’s acquisition of ComHem in Sweden (2018)
5. T-Mobile’s acquisition of UPC in Austria (2018)
6. T-Mobile’s acquisition of Tele2 in the Netherlands (2018)
7. Telenor’s acquisition of Finnish operator DNA (2019)
8. MEIF 6 Fibre’s acquisition of KCOM Group in the UK (2019)
9. Swedish JV between NENT and Telenor (2020)
10. United Group’s acquisition of BTC in Bulgaria (2020)
11. Acquisition of VOO and Brutélé by Providence in Belgium (2020,
Transaction was never implemented)
12. JV between Liberty Global and DPG Media in Belgium (2020)
13. Acquisition of Forthnet by United Group (2020)
14. Iliad’s acquisition of Play Communications S.A. in Poland (2020)
15. PFF’s acquisition of Central European Media Enterprises in
Czechia and Slovakia (2020)
16. The JV between Proximus and Nexus Infrastructure in Belgium
(2021)
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Basis #: CAB VESTAGER/
Briefing for CAB Members
Meeting with Telefonica
21 April 2022
17. The acquisition of Tele Columbus in Germany by Morgan Stanley
and United Internet (2021)
18. United Group’s acquisition of Wind Hellas in Greece (2021)
19. Iliad’s acquisition of UPC Polska in Poland (2022)
o 1 was referred to the UK:
1. The JV between Telefónica and Liberty Global in the UK (2020)
Breakdown by type of mergers:
o 10 mergers involving combination of mobile operations in the same
country:
o 2 were prohibited or the Commission was set to prohibit it:
1. The JV between Telia and Telenor in Denmark (abandoned,
2015)
2. Hutchison’s attempt to acquire O2 in the UK (2016)
o 5 were cleared subject to remedies:
1. Liberty’s acquisition of BASE in Belgium (2016)
2. The JV between Hutchison and Vimpelcom in Italy (2016)
3. Hutchison’s acquisition of full control over the Italian JV (2018)
4. The JV INWIT between Telecom Italia and Vodafone (2020, for
the purpose of network sharing for 5G roll-out)
5. Orange’s acquisition of TKR in Romania (2021)
o 3 were cleared unconditionally:
1. Tele2’s acquisition of TDC in Sweden (2016)
2. T-Mobile’s acquisition of Tele2 in the Netherlands (2018)
3. Vodafone’s acquisition of certain assets of Liberty Global in
Germany, Romania, Hungary and Czechia (2019, in relation to
the overlap in mobile services)
o 9 mergers involving combination of fixed-mobile operations in the same
country, all cleared unconditional y:
1. Orange’s acquisition of Jazztel (2015, in relation to the
combination of fixed and mobile services)
2. Liberty’s acquisition of BASE in Belgium (2016, in relation to the
combination of fixed and mobile services)
3. The JV between Vodafone and Liberty Global in the Netherlands
(2016, in relation to the combination of fixed and mobile
services)
4. T-Mobile’s acquisition of UPC in Austria (2018)
5. Tele2’s acquisition of ComHem in Sweden (2018)
6. Vodafone’s acquisition of certain assets of Liberty Global in
Germany, Romania, Hungary and Czechia (2019, in relation to
the combination of fixed and mobile services)
7. VOO and Brutélé’s acquisition by Providence in Belgium (2020,
Transaction was never implemented)
8. Forthnet’s acquisition by United Group in Greece (2020)
9. Iliad’s acquisition of Play Communications S.A. in Poland (2020)
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Basis #: CAB VESTAGER/
Briefing for CAB Members
Meeting with Telefonica
21 April 2022
10. Orange’s acquisition of TKR in Romania (2021, in relation to the
combination of fixed and mobile services)
11. United Group’s acquisition of Wind Hellas in Greece (2021,
relation to the combination of fixed and mobile services)
o 9 mergers involving a combination of fixed operations in the same
country:
4 cleared subject to remedies:
1. Orange’s acquisition of Jazztel (2015)
2. The JV between Vodafone and Liberty Global in the Netherlands
(2016)
3. Vodafone’s acquisition of certain assets of Liberty Global in
Germany, Romania, Hungary and Czechia (2019)
4. Covage’s acquisition by SFR FTTH (Altice, Allianz and Omers) in
France (2020)
6 were cleared unconditionally:
1. Tele2’s acquisition of TDC in Sweden (2016)
2. Liberty’s acquisition of Ziggo in the Netherlands (2014,
reassessed post-Court annulment in 2018, in relation to the
combination of fixed assets)
3. MEIF 6 Fibre’s acquisition of KCOM Group in the UK (2019)
4. PFF’s acquisition of Central European Media Enterprises in
Czechia and Slovakia (2020)
5. The acquisition of Tele Columbus in Germany by Morgan Stanley
and United Internet (2021)
6. United Group’s acquisition of Wind Hellas in Greece (2021)
7. Iliad’s acquisition of UPC Polska in Poland (2022)
o 5 mergers involving the vertical integration of a telecom operator into
content in the same country, all cleared subject to remedies:
1. The Belgian JV De Vijver Media between Liberty, Corelio and
W&W (2015)
2. The JV between Vodafone and Liberty Global in the Netherlands
(2016)
3. Liberty’s acquisition of Ziggo in the Netherlands (2014,
reassessed post-Court annulment in 2018)
4. Telia’s acquisition of Bonnier Broadcasting (2019)
5. The JV between NENT and Telenor in Sweden (2020)
o 4 cross border mergers, all cleared unconditionally:
1. Iliad’s purchase of Eircom in Ireland (2018)
2. PPF’s (telecom operator in Czechia and Slovakia) acquisition of
Telenor’s telecoms business in Bulgaria and Hungary (2018)
3. Telenor’s acquisition of Finnish operator DNA (2019)
4. Iliad’s acquisition of Play Communications S.A. in Poland (2020)
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