The world is getting smaller for the phone. France Telecome begun to discussion about a long-anticipated takeover offer for the Swedish firm. They trade it for $42 billion. This is unusual deal comparing America’s largest mobile company named Verizon Wireless which normally deal with $27 billion. The growth of mobile phone market is poor. In many countries there are more mobile phones than people. Therefore, bulking up is a good idea to expand the market and for achieving an economies of scale.
In Europe mobile-telecoms markets are taking more consolidation. France Telecome cannot yet create Europe’s biggest mobile-phone company which will be dealing with 237million customers in 30 countries. They try to entice the customers with its more mature mobile and fixed-line operations in the Nordic region where the businesses in Eastern Europe and Central Asia come faster growing now.
And also there are plenty of other possible targets to tie-ups such as smaller firms in Belgium, the Netherlands, Portugal, Switzerland. Vodafone may bid to extend its stake in Vodacom, a South African operator.
Mobile market is limited like an energy market. I think that mobile or other wireless communication systems finally will be used in common share. If the hardware system is to be a public assets, companies should compete in the software market. Still governments in each countries prevent their own countries mobile market from hunting by other countries. However, I think that the bulking up with mobile companies is only a matter of time.
http://www.economics.com/
20600171 13th entry
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