Europe: AT&T’s New Frontier

Players in the telecom industry know that the US wireless market has reached a saturation point. With market penetration exceeding 100%, the prospects for future growth are slim, especially with the Department of Justice (DOJ) intent on preventing major acquisitions in the industry.

As the possibilities for mergers and acquisitions within North America diminish, AT&T (T) has started looking for strategic acquisitions abroad. The company has already partnered with Latin American providers (it is a strategic partner and investor in Carlos Slim’s America Movil) and is also looking to expand its network to Central American countries.

According to reports, AT&T has considered acquiring Telecom Italia (TI), Telefonica (TEF), and Vodafone (VOD) over the last year. However, any possible deal with Vodafone can only materialize once Verizon (VZ), a major competitor for AT&T, settles its dealings with Vodafone for the purchase of its wireless segment.  VZ.