Almost all of the 14 quoted incumbent telecoms operators in Western Europe agree on one thing: that in the medium term only perhaps five of them will survive. The actual process of consolidation, however, remains as contentious as ever. Last week’s deal between Deutsche Telekom and Greece’s OTE, which follows Telefónica’s deal with Telecom Italia last year, suggests that creeping control is the best that acquisitive management teams can expect for now.

The European industry is not, in fact, a bastion of nationalism. Regulation is pretty homogenous, and many mobile operators have overseas owners. In Eastern Europe, the Czech Republic, Poland and Romania among others, have allowed foreign control of their fixed line operators. Efforts to merge Western European incumbents, however, have always ended in tears: abortive combinations include Telcom Italia and Deutsche Telekom in 1999, Telefonica and Holland’s KPN in 2000, and Swisscom and Telekom Austria in 2004. Governments, which often have stakes left over from privatisation, have so far been obstructive. Investors, meanwhile, have been lukewarm as the opportunity for synergies appears limited.