Expect more telco M&A in 2025 – Deloitte

Professional services firm Deloitte has just released its predictions for the technology, media, and telecom (TMT) sector in 2025, and the focus is on increased merger and acquisition (M&A) activity in the telecom industry, particularly in Europe. Deloitte anticipates around 400 M&A deals globally in the telecom sector next year.

The European Union (EU) is expected to be a key area for telecom M&A deals, as regulators shift their focus from encouraging competition among multiple operators to recognizing the benefits of network operators with greater scale. This shift is likely to lead to more approvals for M&A deals in the EU next year.

Deloitte highlights recent telecom mergers and joint ventures that have reduced the number of customer-facing players and emphasizes the trend towards operator consolidation. This trend towards fewer, stronger mobile networks is seen as a way to enhance competition and prevent duopoly situations, ultimately benefiting subscribers.

In addition to regulatory shifts, Deloitte points to broader connectivity alternatives like fixed wireless access (FWA) and low-earth orbit (LEO) satellite competition as factors influencing consolidation. With more options available to consumers, telecom operators are facing challenges in monetizing their investments, particularly with the slow adoption of 5G technology.

Overall, Deloitte’s predictions for 2025 suggest a dynamic year ahead for the telecom sector, characterized by regulatory changes, increased M&A activity, and ongoing challenges in adapting to evolving consumer preferences and technologies.