Consolidation vs fragmentation: the case of the European mobile communications market

In recent times there has been much speculation about the need for consolidation in the European telecommunications industry. However, consolidation has not happened as expected with the market fragmenting instead. This article seeks to explain this phenomenon. The results show that, although many mobile operators have been intent on building empires both within and outside Europe, almost all of these operators have been forced to curtail their ambitions. As a consequence, consolidation has not occurred as expected.