EU to investigate UK mobile payments joint venture

Reuters

European Union antitrust regulators said on Friday they will examine whether a joint venture between the three largest British telecoms companies on mobile payment technologies and advertising falls foul of competition rules.



In March, Vodafone (London), Telefonica-owned O2 (Madrid, Spain) and Everything Everywhere, which is owned by Deutsche Telekom (Bonn, Germany) and France Telecom (Paris), submitted their plans to the European Commission and have answered questions from Brussels since then.



The four month-long investigation will seek to determine whether the mobile operators plans to work together goes too far to shape the emerging areas of mobile payments as well as mobile advertising.
 


"We need to make sure that competing services can keep emerging on this market, so that incentives to innovate remain and customers get the best mobile commerce services at the best cost," EU competition chief Joaquin Almunia said in a statement on Friday.
 


The companies said they remained confident their venture would go through.
 


"The embryonic nature of the mobile payments market in particular means that more time is needed to fully consider the proposed joint venture's plans for a mobile wallet," the three companies said.



The operators say they need to join forces to help all their customers gain access to the new services they are developing as well as to rival technology firms like Google (Mountain View, Calif., USA), Apple (Cupertino, Calif., USA) and Facebook (Menlo Park, Calif, USA), which are also building services for mobile payments.



These companies have gained high advertising revenues from mining and analyzing web users browsing histories and sending them ads based on this information, a practice telecoms companies would also like to cash in on.
 


Critics of the joint venture on mobile payments say the move will put them ahead of any competing offers because they would have access to a majority of British mobile phone subscribers and their data.
 

ArticleTools

Featured Big Data Reports

Market Opportunity: Big Data in the Internet of Things
Big Data and Analytics software and applications will play a crucial role in making IoT a success. The data generated through sensors embedded in various things/objects will generate massive amounts of unstructured (big) data on real-time basis that holds the promise for intelligence and insights for dramatically improved decision processes.

 

Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.

 

Telecom Carrier Big Data Operations, Applications, and Services
Telcos have a major advantage in that they have many sources of data but if they want to monetize that data and derive meaningful, actionable analytics it could be challenging due to the complexities of correlation, prediction, and the massive volumes of data from different sources.

 

Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

 

Featured Events & Partners

The Telecom Exchange (TEX)
Wednesday, June 24, 2015

Cipriani Wall Street, New York City

Designed to navigate enterprise and carrier network operators through all carrier hotels and colocation houses available in the US and globally.

Visit event website...