KPN chief executive Eelco Blok (pictured) has cited his company’s €8.6 billion merger of E-Plus with Telefonica Deutschland as a turning point for the European mobile industry, said the Financial Times.

“Consolidation really needs to happen to do the necessary investments in both fixed and mobile. The first wave will be in-country mobile consolidation and then later wider-scale consolidation – in a few years’ time there could be [just] three, or four or five big groups in Europe.”

However Blok, which fancies KPN as a key player in the remodelling of the European market, must wait for a regulatory green light from the European Commission before the German deal can go ahead.

There will likely be conditions set by the commission, which has until 14 May to reach a decision.

Still, KPN’s head is optimistic. He said that the tone of Joaquin Almunia, the EU’s competition chief, has shifted over the last 12 months.

Nevertheless concessions will have to be made. Recent consolidation in Austria puts an argument in favour of concessions. Consolidation was followed by price rises, a fact that will not have escaped Almunia’s attention.

Spectrum is likely to be the key issue in negotiations between KPN, Telefonica and the commission. A merged entity of E-Plus-Telefonica Deutschland would have a disproportionate share of spectrum relative to T-Mobile and Vodafone, the current one and two in the market.

Crucially Blok believes the commission now accepts that a reduction in the number of rivals is necessary for Europe to bridge the gap with US and Asian operators in 4G investment.

“Therefore consolidation is needed. Of course, they also want to protect the end user. It’s a balancing act [but] I think do-able. I think they will find an acceptable solution and after we will see further consolidation in Europe.”

A proposed acquisition of O2 Ireland by 3 Ireland is the second deal which will reveal the commission’s attitude to M& in Europe.

Separately, relations between KPN and America Movil are thawing after last year’s failed takeover bid by the Mexican group, said Blok.

The two companies have re-established commercial partnership agreements. Blok admitted the relationship was “not really good” after America Movil withdrew its offer but said it was better now.

Earlier this week the Mexican company cut its stake in KPN from 29.7 per cent to 27.1 per cent. A lockout agreement following the failed takeover prevents American Movil from bidding for KPN again until April.