In 2007, Eastern European telecommunication markets experienced a surge in merger and acquisition activity, with strategic and financial investors spending €3.9 billion to acquire ten telecommunication operators in the region. However, the question remains whether this activity will continue in light of the global economic slowdown. Despite the slow down, Arthur D. Little predicts that the pressure to consolidate will drive M&A activity to remain high. The three trends identified for continued high M&A activity include the privatization of remaining incumbents, the tendering of new mobile licenses, and the increasing competitive intensity between operators in the region. As market growth slows down, the pressure for market consolidation will increase, leading to more cross-border and intranational mergers driven by the need to address cost synergy potentials.
