Three of Europe's largest mobile operators are in talks
about forming an alliance to offer cross-border services to
business customers.
The alliance, functioning much like those in the global airline
industry, would seek to counter the growing European domination of
Vodafone Group, the region's biggest mobile operator.
Under the reported alliance, Telefónica Móviles, Telecom Italia
Mobile and T-Mobile International would offer customers uniform
voice and data services and discounted fees across markets in which
they operate in Europe, the US and Latin America.
All three operators declined to comment.
Analysts, however, were not surprised by the rumour.
"Vodafone has such a huge European footprint and portfolio of
services to meet the needs of travelling workforces that the other
big European providers, like TIM, Telefónica and T-Mobile, really
need to come up with a way to lock into the lucrative multinational
market," said Bena Roberts, an analyst with Current Analysis.
Vodafone has nearly 113 million customers worldwide. The company
already offers special Europe-wide calling rates under its EuroCall
program and has recently launched a range of mobile office services
targeting businesspeople on the move.
It is also building high-speed wireless internet networks alone
and in co-operation with airlines, hotels and other groups.
By comparison, TIM has around 31 million customers worldwide.
The operator has all but abandoned its European expansion plans,
having sold its remaining stake in France's Bouygues Télécom
earlier in the year. The Italian operator has continued to expand
its market position in Latin America.
Telefónica, with around 42 million customers worldwide, has
also abandoned its European expansion plans, having pulled the plug
on third-generation mobile broadband ventures in Austria, Germany,
Italy and Switzerland last year. [Like TIM, the Spanish operator
has a huge presence in Latin America.
Meanwhile T-Mobile, which has more than 59 million customers
worldwide, slammed the brakes on its European expansion after its
parent company, Deutsche Telekom, amassed more than €64bn (£44bn)
in debt, mostly from the acquisition of 3G licences and mobile
companies.
Whether the three companies will succeed in reaching an
agreement to form an alliance is anyone's guess. Telefónica has
a poor track record at forming partnerships, having been involved
with a string of carriers, including BT Group, WorldCom and
KPN.
TIM and T-Mobile may not fare any better. Their parent companies
had tried and failed to merge a few years ago.
"It's still unconfirmed whether the three operators are talking
and if so, whether they can strike a deal," Roberts said. "But if
they do, it would be great for users. More competition should lead
to lower fees and new services."