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  • Editor’s Picks / 26 March 2015 at 8:49 GMT

    Telecom mergers surge, prices fall

    Bloombergview
    Amid falling per-customer-revenue telecom companies are eager to increase market share by arranging mergers. Hong Kong's Hutchison Whampoa buys Telefonica's UK business (branded O 2), O 2 Germany earlier bought E-Plus and in the Nordics Swedish-Finnish TeliaSonera is adding competitors to its businesses in Denmark and Norway. This merger-trend will continue, probably also in the US. Decreasing competition usually is a bad thing for customers. However, prices for telecom services have been falling heavily in recent years and will continue to do so, possibly leading to even more mergers because of falling per-customer-revenue (see above).
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