Europe approves Telefonica O2 acquisition

European regulators Tuesday gave their blessing to the $31 billion acquisition of British telecom O2 by Spain's Telefonica.

The European Commission said in Brussels that Telefonica had taken adequate steps to preserve the overall competitiveness of the wireless communications market by separating itself from the FreeMove organization.

FreeMove is an alliance of major European telecoms formed to improve roaming capabilities on the continent through the sale of wholesale roaming. On the other hand, O2 is affiliated with a similar alliance of smaller companies called Starmap.

The commission stated that shifting O2 from Starmap would put too much clout in the hands of FreeMove by removing O2's wholesale capacity from Starmap.

To mollify the commission, Telefonica agreed to withdraw from FreeMove and not re-join without the agency's approval.

Copyright 2006 by United Press International

Citation: Europe approves Telefonica O2 acquisition (2006, January 10) retrieved 31 January 2023 from https://phys.org/news/2006-01-europe-telefonica-o2-acquisition.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

At least 15,000 killed by hot weather in Europe in 2022: WHO

0 shares

Feedback to editors