The industry was electrified in March when AT&T of the US agreed to buy BellSouth, a smaller rival, for $89.4bn including debt. It is the second biggest telecoms transaction ever, and will create the world’s biggest telephone company if approved by regulators.

But 2006 will also be notable for the deals that did not happen. Telecom Italia, Italy’s biggest telecoms company, abandoned any thought of selling off its domestic mobile business after running into opposition from the country’s prime minister. China Mobile, the country’s state-owned mobile operator, dropped plans to buy Millicom, a wireless business in emerging markets, at the eleventh hour, in an apparent loss of nerve.