Expect more telco M&A in 2025 – Deloitte – TelecomTV

Deloitte’s crystal ball is out, and its predictions for 2025 are looking lively. Brace yourself for more merger and acquisition (M&A) action in the telecom sector, especially in Europe. It seems like regulators are shifting gears, focusing more on network growth, security, and resilience versus simply keeping prices low by encouraging multiple operators to compete.

The professional services firm Deloitte anticipates a surge in telecom consolidation next year, with around 400 M&A deals expected globally – a tad more than the 388 deals expected this year. Details from Deloitte reveal that Europe could be a hotspot for these activities, with regulators likely to greenlight more deals as they recognize the importance of network operators achieving greater scale for future stability and growth.

Interestingly, the report draws attention to recent telecom mergers worldwide that have caught regulatory approval, hinting that Europe might be next in line for some action. For instance, the proposed merger of Vodafone UK and Three is already in the works and set to go live in 2025. There’s growing support for consolidation in the region, with voices advocating for fewer, stronger mobile network operators to enhance competition and drive innovation.

Although Europe currently trails behind other regions in terms of subscriber numbers per operator, this indicates ample room for improvement and consolidation. With Europe’s regulatory climate shifting towards operator consolidation, subscribers can potentially benefit from increased competition, innovative services, and better prices.

Beyond M&A excitement, the telecom landscape is evolving rapidly, offering subscribers a broader range of connectivity options than ever before. From fixed wireless access (FWA) gaining ground in home broadband services to low-earth orbit (LEO) satellite networks expanding into remote areas, the possibilities are growing exponentially.

While 5G continues to grapple with finding its niche and generating returns for operators, the future seems promising. Deloitte’s predictions paint a picture of a dynamic telecom sector poised for growth, driven by innovation and strategic consolidation in the year ahead. Let’s buckle up and see what unfolds in 2025!