Telecom stocks in this decade are great business because they control spectrum frequency and charges people to make calls, serve data and messages to consumers. Since people usually use these services even though its recession or retirement, their cash flow is very defensive.

In Singapore we have 3 telecom operators. Occasionally there are heavy competition amongst them. Whatever business that is highly regulated and heavy competition based on price is going to bad for everyone.

The situation is worse in Europe because major telecom operators are in various countries. Competition is intense. To the point its been detrimental. This together with consumers switching away from SMS and cheaper plans have made telecom companies there not very attractive.

What I think is consolidation can be bad for consumers but better for operators. Will we see that happening? I think it will be sporadic and slow.

News out from Austria seem to ...