The European passive mobile infrastructure markets have seen high levels of mergers and acquisitions (M&A) activity in recent years, attracting the attention of competition authorities.

A key M&A trend involves telecoms operators selling their sites to independent tower companies (TowerCos).

These transactions may result in more efficient use of infrastructure and lower barriers to entry in downstream telecom markets.

However, some transactions may allow a TowerCo to gain excessive market power in the passive infrastructure market. This could lead to higher prices and more onerous contractual conditions for telecoms operators, with potential knock-on effects on end users.

So far, national competition authorities have intervened in three such transactions, requiring structural remedies in two cases and behavioural commitments in one case.

More recently, they have also required remedies in other types of M&A transactions, including a deal between two TowerCos and the acquisition of a TowerCo by a telecoms operator.

Cullen International’s latest report draws on merger control decisions by national competition authorities and the European Commission to explain how competition works in the passive mobile infrastructure market and what concerns, if any, authorities have raised about different types of transactions.

For more information and access to the full report, please click on “Access the full content” - or on “Request Access”, in case you are not subscribed to our European Competition service.

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