EU: Commission review of Telefonica/KPN deal not concerned with new entrant

The European Commission’s review of Telefonica’s acquisition of KPN’s Germany wireless unit is more concerned with boosting existing competitors in the industry rather than creating a new market entrant, according to sources.

The Commission declined to pass on review of the merger to German regulators in efforts, reports say, to streamline its telco merger regime. Experts have speculated as to the concessions the EU watchdog would likely demand from Telefonica, Spain’s largest telco, to clear the deal, and Telefonica had reportedly offered to lease its spectrum to a new competitor.

But sources say the Commission is focusing on how existing, smaller operators will be affected by the $12 billion deal.

The acquisition of KPN’s E-Plus unit would reduce the number of wireless operators in the nation from four to three, raising concerns among regulators and consumer advocates.

Full content: Businessweek

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