At Mobile World Congress (MWC) 2025, telecommunications and AI industry leaders have reiterated their calls for industry consolidation in Europe. They argue that streamlining the sector is crucial to maintaining competitiveness, particularly in the face of global challenges posed by China and the U.S.
Telefónica’s CEO, Marc Murtra, stressed the need for large telecom companies to consolidate to foster technological innovation and capacity. He warned that without such moves, Europe risks losing its global standing. He pointed out that Europe’s telecom market remains fragmented, with numerous small players, unlike the few dominant telecom giants in the U.S. and China.
Vodafone CEO Margherita Della Valle echoed these concerns, highlighting that Europe is becoming a “tech taker, not a tech maker.” She warned that without consolidation, Europe might rely on outside companies to handle the bulk of telecommunications traffic, undermining its autonomy in the tech space.
Deutsche Telekom’s CEO, Peter Höttges, suggested that Europe could benefit from a more efficient regulatory environment, calling for a government initiative to cut bureaucracy, which he believes hinders industry growth.
AI integration and consolidation were also central to the discussions. Arthur Mensch, CEO of Mistral AI, noted that market fragmentation hampers large-scale deployments in both AI and telecommunications. Consolidation could help address these barriers, facilitating the development of AI-driven services.
The European Commission has expressed caution on mergers, emphasizing that while consolidation can offer economic benefits, it must be carefully evaluated to avoid reducing competition and harming customers. They also plan to update telecom regulations under the upcoming Digital Networks Act, set for early 2025.
The debate highlights growing concerns about Europe’s ability to compete globally in both telecoms and AI. As AI technologies like Mistral’s integration with French telecoms company Orange are proving, consolidation can facilitate innovations that benefit both industries and consumers alike.