The Body of European Regulators for Electronic Communications (Berec) has concluded that consolidation across the European Union telecom sector does not deliver higher network investment, according to a new report.

The finding cuts against the central argument operators deploy when seeking clearance for in-market mergers and cross-border combinations: that scale is required to fund next-generation networks.

What does Berec cover?

Berec brings together the national regulatory authorities of EU member states and advises the European Commission on electronic communications markets. Its data and analysis feed directly into how the Commission and national regulators assess competition in fixed and mobile telecoms.

The new report tests whether operators that have undergone consolidation subsequently increased capital spending on infrastructure. Berec's answer, on the evidence: no consistent link between reduced competition and higher investment.

Why the finding matters for future deals

For operators preparing merger submissions, the report raises the bar for credible investment commitments. Promised post-merger capex can now be tested against actual spending in comparable past cases. National regulators and the Commission can lean on Berec's empirical conclusion when weighing remedies built on forward-looking investment pledges.

The investment case has historically carried weight in reviews of cross-border combinations and in-country consolidation moves. Berec's conclusion hands sceptics a structured rebuttal: if aggregate investment does not rise after consolidation, competition concerns gain ground against infrastructure rationales.

What changes in practice

National regulators facing three- or four-player mobile markets can press harder on Berec's analysis when evaluating further in-market mergers. The Commission, reviewing cross-border transactions, gains additional grounding for conditional approval or outright rejection on competition grounds rather than accepting operator capex promises at face value.

Operators, in turn, will need to rethink how they frame future transactions. Deals justified primarily on investment grounds face a steeper scrutiny path, regardless of how compelling the commercial logic appears in private discussions with regulators.

The wider context

Operators across the EU confront rising network costs linked to 5G densification, full-fibre expansion and upgrades to transport and core infrastructure. Consolidation advocates argue that scale smooths the absorption of those costs. Berec's empirical finding suggests the argument does not hold and points policymakers toward alternative levers — coverage obligations, wholesale access conditions and targeted rural support — if investment gaps persist.

What happens next?

The Commission and Berec's joint work programme, and any follow-up reporting, will determine how the new conclusion reshapes merger review across the bloc. Investors should expect operators preparing transactions to adjust their pitchbooks, and national regulators to embed the finding into consultation responses. The case that consolidation drives investment has just become harder to argue in Brussels and in member-state capitals.