Pan-EU Telco Infrastructure Talks Are Unlikely to Succeed

Will European telcos be able to create a unified fixed nework infrastructure across borders? Fitch Ratings doesn't think so. 

The proposal, which presumably would have to be ratified and approved by the European Commission, would allow all the contestants to essentially create a continent-wide infrastructure company that would sell capacity and services to any retail operator in any of the participating countries.

If you think about it, this is a bigger version of the infrastructure sharing mobile operators have been doing: sharing towers and sometimes radio infrastructure in ways that lower costs for each of the retail providers.

Doubtless there are pragmatic difficulties, such as technology incompatibilities in some cases. But Fitch thinks the bigger problem simply will be EC regulator opposition to a move very likely seen as the precursor to more consolidation in the EC telecom markets. 

Deutsche Telekom, Orange, Telecom Italia, Telefonica, Belgacom and KPN are among the carriers interested in such a cross-country infrastructure sharing plan. The sharing might not be seen as "consolidation" in the market by some. But regulators might not agree.