With consolidation in the UK and France awaiting regulatory approval, this quarter’s results focused on merger reviews, while satellite was again framed as a complement, rather than a threat, to terrestrial networks
Orange: The timeline for the proposed SFR acquisition remains unchanged
Christel Heydemann (CEO, Orange) stated that Orange’s “Trust the future” plan, launched at the start of 2026, was showing early promise, with the operator retaining a strong balance sheet and liquidity. With growth being delivered across the group (albeit mostly from outside of Europe), she announced upgraded EBITDAaL guidance for this financial year, from >4% to >4.5%. Heydemann confirmed that the timeline for Orange’s proposed acquisition of SFR with Bouygues Telecom and Iliad in France remained “unchanged”, with the parties set to officially sign an agreement by the end of 2026 and expecting to close the deal in H2 2027, subject to regulatory approvals. With respect to the transaction, she noted that there were currently two processes running in parallel, the first of which relates to engagement with employee representatives. Despite the legal and industrial action initiated by SFR’s employees and its internal works council, Heydemann was confident that a resolution could be found that would not delay the agreement being signed.
The second process is the French competition authority’s (Autorité de la concurrence) ongoing review, which she stated was moving forward as planned. In response to an analyst question, Heydemann acknowledged that a mechanism exists to adjust (downwards) the acquisition price depending on the performance of SFR over time; however, any renegotiation would impact the competition investigation’s timeline and therefore push its conclusion back. On the upcoming presidential election, she underlined that uncertainty is never good for business and investment, but that the proposed deal had seen “no bad reaction from any party” that might prevent it going ahead regardless of whomever comes into power next April. Heydemann also briefly mentioned the letter of intent signed by Deutsche Telekom, Orange, Telefónica and Vodafone for a joint bid for expiring Mobile Satellite Services (MSS) spectrum licences, which she considered would support the EC’s ambition for sovereignty, security and resilience in “critical connectivity infrastructure”. On the potential threat of satellite to telecoms operators, Heydemann reiterated comments made in the Q2 2026 earnings call that Orange sees the technology as a complement to its terrestrial networks, helping to provide “completeness” in terms of service coverage, adding that it was engaged in pilots and partnerships with a number of providers (including AST SpaceMobile, Skylo and Starlink) across its European footprint.
Liberty Global: Stay tuned, it ain’t over
The prepared remarks and subsequent analyst questions during Liberty Global’s Q3 2026 results call leaned heavily on recent (and major) developments in the UK. Mike Fries (CEO, Liberty Global) firstly gave an overview of the new strategic plan under development at Virgin Media O2, which aims to achieve £800m in cost savings by 2029 through headcount reduction, operating model simplification and capital reallocation – including the suspension of any further cable-to-fibre upgrades. Fries stated that the UK remains one the toughest markets in Europe, particularly since the arrival of “unsustainable” altnet pricing, and while Virgin Media O2 had continued to report a steady financial performance amid various headwinds, that was no longer enough. Believing that now is a “great moment” to reset, Fries added that the operator would remain “opportunistic” in considering whether to wholesale its network or to extend the reach of its brand via another’s infrastructure – a nod to press reports that Virgin Media O2 is close to agreeing an access deal with Openreach outside of its existing footprint. Lutz Schüler (CEO, Virgin Media O2) confirmed that next steps on the plan will be determined by the board by the end of November 2026, with the finer details made public in Q1 2027 at a Capital Markets Day event.
The second focus of this quarter’s call was the ongoing review of the proposed nexfibre/Netomnia transaction. Fries stated that Liberty Global remained committed to the deal despite being “deeply disappointed” by the Competition and Markets Authority’s (CMA) “fundamentally flawed” interim report – comments reiterated during Telefónica’s own results event. In particular, he criticised the CMA for not understanding where the market is heading, that Liberty Global cannot be completely sure where how the market will evolve, and that he is certain that the “powers that be” within the UK Government have no idea where it is heading either. Fries stated that the “regulatory posturing” the operator has encountered had been a “wake-up call”, adding that Liberty Global never anticipated such fierce resistance to the acquisition, putting it in a “disconcerting” situation. Fries continued that the CMA’s counterfactual (where CityFibre buys Netomnia) does not reflect the commercial and financial realities of the UK market, is not a credible basis on which to judge the nexfibre/Netomnia deal and wrongly assumes future investment would just happen – something Virgin Media O2’s announcement probably demonstrates. With investors watching closely, Fries considered that the question now is whether the CMA will apply the law in a fair and reasonable way that does not pick winners or “prop up failing bidders”. He stated that the CMA had been asked to issue a supplementary interim report, which Fries conceded might or might not happen, but stressed that attendees should “stay tuned, [the story] ain’t over”.
BT Group: A modest decline in broadband lines, with TalkTalk and Virgin Media O2’s rumoured intent to wholesale from Openreach dominating questions
After a brief run through of H1 FY27, during which BT Group experienced a modest decline in Openreach broadband lines, predictably proceedings turned to the acquisition of TalkTalk out of administration in what Allison Kirkby (CEO, BT Group) described as unprecedented circumstances. We were reminded that TalkTalk had been in a sale process for a long time, and that it needed “a credible buyer” or would have gone into liquidation. For BT, the acquisition would imply a £400m cost in this fiscal year, a £100m hit to Openreach, and would become a separate reported segment in its accounts – should the UK Government’s regulatory review lead to approval. The other topic of interest was the news that Virgin Media O2 may start to use the Openreach full fibre network to reach new customers outside its own existing footprint. While not able to say very much, Kirkby pointed out that Virgin Media O2 is the only major ISP not currently on the Openreach platform. She remarked that given capital constraints and a period of sustained higher interest rates likely ahead, it makes sense for all ISPs to review where they build and where they buy, reminding us that as a regulated asset, Openreach is available to everyone.
Deutsche Telekom: Policymakers’ recognition of digital sovereignty’s importance is positive, but this should be focused on security, not the satellite market
Tim Höttges (CEO, Deutsche Telekom) was once again pleased to report a strong quarter of results for Deutsche Telekom, despite being in a number of “very competitive markets”. Höttges stated that it was “all hands on deck”, with a share buyback of up to €2bn (£1.6bn) planned for 2027. Much like in Q2 2026, Höttges continued to stress the importance of upcoming spectrum auctions in the US. However, most of the discussion, especially when prompted by analysts’ questions, was focused on Europe. Höttges staunchly dismissed the need for a “total panic” over the potential for AI or satellite to disrupt telecoms markets, but warned that the sector must “put our blinkers on” to face this challenge. Questions were raised over the importance of digital sovereignty, with one analyst asking whether Deutsche Telekom had gained any confidence in the matter as a result of the EC’s proposed framework for assigning MSS spectrum, which slightly prioritises European operators. Höttges praised the growing recognition of digital sovereignty’s importance from European and German policymakers, but was more concerned with how it played into security and resilience than the satellite market. On the EC’s proposals, he batted away the idea that non-EU operators were being excluded, essentially arguing that the framework would not be particularly impactful for sovereignty in the satellite market. Still with satellite, a number of questions honed in on the potential for SpaceX to enter the terrestrial European telecoms market. While Höttges was clear this should be taken seriously, he also highlighted that the costs of doing so would be enormous, exclaiming that if SpaceX wants to “play” in the market, it is going to cost at least €200bn (£166.8bn). Höttges also welcomed one analyst’s idea that European telecoms regulation needed to be diluted to “level the playing field” with AI and satellite and praised policymakers for their willingness to do so, giving specific reference to the EC’s January 2026 Digital Networks Act (DNA) proposal. Separately, on the EC’s revised Cybersecurity Act proposal (which came just a day ahead of the DNA), Höttges stated that to his knowledge, the 36-month rip-and-replace timeline for mobile networks was “off the table”.
Vodafone Group: H1 FY27 Results
No notable items on regulation and policy were presented or discussed during the earnings call.
TIM: Completion of Poste Italiane’s takeover marks a new strategic chapter for the company
In a first (?) for earnings calls, Pietro Labriola (CEO, TIM) began by presenting the results via his AI digital twin, which noted that TIM was on track to meet its full year targets and that the first nine months of the year had confirmed the resilience of the business. He stated that TIM’s revenue mix continues to shift away from standalone connectivity, with cloud now accounting for 46% of service revenue. Piergiorgio Peluso (CFO, TIM)’s own digital twin highlighted that the completion of Poste Italiane’s acquisition of 87% of TIM’s shares marks the beginning of a new strategic chapter, which will combine connectivity and technology services to create Italy’s “next-generation telecoms operator and integrated digital platform”. Questions (answered by the real Labriola and Peluso) focused on TIM’s ongoing legal conflict with INWIT regarding its notice to terminate its long-term Master Service Agreement (MSA) with the tower company. Labriola stated that while AGCOM had tried to initiate a kind of “couples therapy” between the parties, he considered that they could resolve the issue directly with INWIT by themselves. Labriola noted that if TIM did not receive a fair price from INWIT, the company would “go on their own”, but that sticking with INWIT for its infrastructure would be the “ideal” scenario. Regarding satellite, according to Labriola, this is more useful for remote areas, noting that customers tend to prioritise fibre, fixed wireless access (FWA) and then satellite in that order when they have the choice. On agentic AI, Labriola claimed that he was “not worried” about the prospect of using it to compare tariffs in Italy, as prices are already low. He also noted that using AI requires a higher latency, with Andrea Rossini (Chief Consumer, Small & Medium Business Market Officer, TIM Group) highlighting that AI could therefore create a revenue opportunity in terms of differentiated services, leading to increased prices for those with priority services.
Telefónica: January-September 2026 Results
No notable items on regulation and policy were presented or discussed during the earnings call.
