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Europe telcos urge more mega-mergers to catch up to US, China on 5G

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The Deutsche Telekom pavilion at Mobile World Congress in Barcelona, Spain.

Angel Garcia | Bloomberg | Getty Images

BARCELONA — Europe’s telecommunication firms are ramping up calls for more industry consolidation to help the region compete more effectively with superpowers like the U.S. and China on key technologies like 5G and artificial intelligence.

Last week at the Mobile World Congress (MWC) trade show in Barcelona, CEOs of several telecoms firms called on regulators to make it easier for them to combine their operations with other businesses and reduce the overall number of carriers operating across the continent.

Currently, there are numerous telco players operating in multiple EU countries and non-EU members such as the U.K. However, telco chiefs told CNBC this situation is untenable, as they’re unable to compete effectively when it comes to price and network quality.

“If we’re going to invest in technology, in deep know-how, and bring drastic change, positive drastic change in Europe — like other large technological companies have done in the U.S. or we’re seeing today in China — we need scale,” Marc Murtra, CEO of Spanish telecoms giant Telefonica, told CNBC’s Karen Tso in an interview.

“To be able to get scale, we need to consolidate a fragmented market like the telecoms market in Europe,” Murtra added. “And for that, we need a regulation that allows us to consolidate. So what we do ask is: please unleash us. Let us gain scale. Let us invest in technology and bring upon productive change.”

Watch CNBC's full interview with Orange CEO Christel Heydemann

Christel Heydemann, CEO of French carrier Orange, said that while some mega-deal activity is starting to gather pace in Europe, more needs to be done to guarantee the continent’s competitiveness on the world stage.

Last year, Orange closed a deal to merge its Spanish operations with local mobile network provider Masmovil. Meanwhile, more recently, the U.K.’s Competition and Markets Authority approved a £15 billion ($19 billion) merger between telecoms firms Vodafone and Three in the U.K., subject to certain conditions.

“We’ve been actively driving consolidation in Europe,” Orange’s Heydemann told CNBC. “We see things changing now. There’s still a lot of hope.”

However, she added: “I think there’s a lot of pressure in Europe from the business environment on our political leaders to get things to change. But really, things have not yet changed.”

During a fiery keynote address on Monday, the CEO of German telco Deutsche Telekom, Tim Höttges, said that other telco markets such as the U.S. and India have condensed in size to only a handful of players.

The American telco industry is dominated by its three largest mobile network operators, Verizon, AT&T and T-Mobile. T-Mobile is majority-owned by Deutsche Telekom.

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A chart comparing the share price performance of T-Mobile, America’s largest telco by market cap, with that of Germany’s Deutsche Telekom and France’s Orange.

“We need a reform of the of the competition policy,” Höttges said onstage at MWC. “We have to be allowed to consolidate our activities.”

“There is no reason that every market has to operate with three or four operators,” he added. “We should build a European single market … because, if we cannot increase our consumer prices, if we cannot charge the over-the-top players, we have to get efficiencies out of the scale which we created.”

“Over-the-top” refers to media platforms such as Netflix that deliver content over the internet, bypassing traditional cable networks.

Europe’s competitiveness in focus

From AI to advances to next-generation 5G networks, Europe’s telecoms firms have been investing heavily into new technologies in a bid to move beyond the legacy model of laying down cables that enable internet connectivity — a business model that’s earned them the pejorative term “dumb pipes.”

However, this costly endeavor of modernization has happened in tandem with sluggish revenue growth and an inability for the sector to effectively monetize its networks to the same degree that technology giants have done with the emergence of mobile applications and, more recently, generative AI tools.

At MWC, many mobile network operators talked up their usage of AI to improve network quality, better serve their customers and gain market share from competitors.

Still, Europe’s telco bosses say they could be accelerating their digital transformation journeys if they were allowed to combine with other large multinational players.

“There’s this real focus now around European competitiveness,” Luke Kehoe, industry analyst for Europe at network intelligence firm Ookla, told CNBC on the sidelines of MWC last week. “There’s a goal to mobilize policy to improve telecoms networks.”

Watch CNBC's full interview with Deutsche Telekom CEO: 'Europe has to wake up'

In January, the European Commission, the executive body of the European Union, issued its so-called “Competitiveness Compass” to EU lawmakers.

The document calls for, among other things, “revised guidelines for assessing mergers so that innovation, resilience and the investment intensity of competition in certain strategic sectors are given adequate weight in light of the European economy’s acute needs.”

Meanwhile, last year former European Central Bank President Mario Draghi released a long-awaited report that urged radical reforms to the EU through a new industrial strategy to ensure its competitiveness.

It also calls for a new Digital Networks Act that would look to improve incentives for telcos to build next-generation mobile networks, reduce compliance costs, improve connectivity for end-users, and harmonize EU policy across the network spectrum, or the range of radio frequencies used for wireless communication.

“The common theme and the mood music is certainly reducing ex-ante regulation and to foster what they would call a more competitive environment which is an environment more conducive of consolidation,” Ookla’s Kehoe told CNBC. “Moving forward, I think that there will be more consolidation.”

However, the telco industry has some way to go toward seeing transformational cross-border mergers and acquisitions, Kehoe added.

For many telco industry analysts, the demands for increased consolidation is nothing new.

“European telco CEOs have never been shy about calling for consolidation and growth-friendly regulation,” Nik Willetts, CEO of the telco industry association TM Forum, told CNBC. “But regulation is only one piece of the puzzle.”

“In the last 12 months we’ve seen a new energy from our members in Europe to get on with the huge task to transform themselves: simplifying, modernizing and automating their operations and legacy tech.”

“This will make it possible to rapidly adapt to new customer needs and market realities, whether building new partnerships, undergoing M&A or delayering integrated businesses – all trends we expect to reach new heights over the next 24 months,” he added.

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Uranium as big play due to AI-driven energy demand

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Uranium is having a “glow up” moment… will it last?

The uranium trade’s shelf life may last years.

According to Sprott Asset Management CEO John Ciampaglia, a “real shift” upward is underway due to increasing global energy demand — particularly as major tech companies look to power artificial intelligence data centers.

“We’ve been talking about uranium and nuclear energy non-stop for four years at Sprott, and we’ve been incredibly bullish on the segment,” he told CNBC’s “ETF Edge” this week.

Ciampaglia’s firm runs the Sprott Physical Uranium Trust (SRUUF), which Morningstar ranks as the world’s largest physical uranium fund. It’s up 22% over the past two months.

The firm is also behind the Sprott Uranium Miners ETF (URNM), which is up almost 38% over the past two months. The Sprott website lists Cameco and NAC Kazatomprom JSC as the top two holdings in the fund as of June 12. 

“It’s [uranium] a reliable form of energy. It has zero greenhouse gases. It has a very good long-term track record,” Ciampaglia said. “It provides a lot of electricity on a large scale, and that’s right now what the grid is calling for.”

Ciampaglia finds attitudes are changing toward nuclear energy because it offers energy security with a low carbon footprint. Uranium is “incredibly energy-dense” compared to most fossil fuels, he said, which makes it a promising option to ensure energy security. 

He cited the 2022 energy crisis in Europe after Russia cut its oil supply to the region and April’s grid failure in Spain and Portugal as cases for more secure energy sources.

“We think this trend is long term and secular and durable,” Ciampaglia said. “With the exception of Germany, I think every country around the world has flipped back to nuclear power, which is a very powerful signal.”

‘You need reliable power’

VanEck CEO Jan van Eck is also heavily involved in the uranium space.  

“You need reliable power,” he said. “These data centers can’t go down for a fraction of a second. They need to be running all the time.”

His firm is behind the VanEck Uranium and Nuclear ETF (NLR), which is up about 42% over the past two months. According to VanEck’s website as of June 12, its top three holdings are Oklo, Nuscale Power and Constellation Energy.

But he contends there’s a potential downside to the uranium trade: Building new nuclear power plants can take years.

“What’s going to happen in the meantime?” Van Eck said. “Investors are not patient, as we know.”

Van Eck also thinks it’s possible the Trump administration’s positive attitude toward nuclear power could fast track development.

He highlighted nuclear technology company Oklo during the interview. Its shares soared on Wednesday after the company announced it was anticipating a deal with the Air Force to supply nuclear power to a base in Alaska.

The agreement came not long after President Donald Trump in May signed a series of executive orders to rework the Nuclear Regulatory Commission, expedite new reactor construction and expand the domestic uranium industry. 

“Trump controls federal land, so that’s not a NIMBY [not in my backyard] kind of potential risk,” said Van Eck. “They’re going to leverage that hard to start to show the safety of these newer, smaller technologies.”

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Amazon is selling an $800 portable power station for $550, and shoppers 'love the mobile design and durability'

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TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.

Camping is a fun summer activity. What’s not fun is having no access to electricity. You can’t charge your phone, watch TV, or make your morning cup of coffee. Thankfully, portable power stations allow you to do all that and more. It’s literally like bringing along a giant battery for all of your electronics. Portable power stations are also good to have around your home in case of power outages.

There’s just the problem of price. Portable power stations are notoriously expensive, especially ones that have a larger energy storage capacity. The good news is that we were able to find a solid deal on a 1,056-watt-hour (or 1 kilowatt-hour) power station. This $800 Anker Solix C1000 Portable Power Station is $550 at Amazon for a limited time. At 31% off, you’re saving $250.

Anker Solix C1000 Portable Power Station, $550 (was $800) at Amazon

Courtesy of Amazon

Get it.

The Anker Solix C1000 features a power output of 1,800 watts, making it strong enough to handle multiple electronics and small appliances at once. It has 11total power ports. You get two USB-A and USB-C ports, a car socket, and six AC outlets. Additionally, it also functions as a night light and has a handle for easy carrying. It weighs about 28 pounds.

Now let’s talk about charging. There are two ways you can charge the Anker Solix C1000. The first way is just by plugging it into a standard AC wall outlet. Or if you have the portable solar panels (sold separately), you simply connect the wires and place the panels in the sun. When plugged into an AC outlet, your power station can be fully charged in about an hour. If you charge up with solar, it’ll likely take around two hours. The digital display on the front of the power station shows you the battery and charging status.

Related: Walmart is selling a $1,120 storage shed for only $150, and shoppers say it’s ‘incredibly useful’

Shoppers have found multiple uses for this portable power station. “We bought it mainly for short power outages and to run our refrigerator, but it will have many other uses for sure,” one shopper said. “Just this past week, I had to do some repairs to our floating dock, and there is no extension cord long enough to reach, so I brought this Anker Solix C1000 and it powered our two saws and drills without any issue at all. It’s very cool and has lots of different outlets. Very impressive unit!”

Others say they get daily use out of it. “I love it. I use it every day. I am traveling and camping everywhere,” one shopper shared. “I use it to power a car mobile refrigerator, a little portable air conditioner, and of course, my iPhone and other electronics, and sometimes an electric stove. It can take on all tasks with no problem. I love the mobile design and durability.”

You don’t need to be ‘roughing it’ the next time you go camping. Consider grabbing the Anker Solix C1000 Portable Power Station to keep all your devices charged and bring along a few essentials for the kitchen or living room. You’ll feel like you never left home. 

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Amazon is selling a 'high-quality' $525 Citizen Eco-Drive watch for $260, and buyers love its 'useful functions'

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TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.

Time is the most valuable thing any of us has. Therefore, why not keep track of it in the most accurate and stylish way possible, relishing every second? Amazon can help you do that with its incredible selection of high-end watches. One of them, from Citizen, is currently available for half off, and we think it ticks all the boxes.

The Citizen Calandrier Eco-Drive Watch is on sale for $260 right now, which is 50% off the regular price of $525. Not only does this watch give you the time, but it even tells you the day and the date.

Citizen Calandrier Eco-Drive Watch, $260 (was $625) at Amazon

Courtesy of Amazon

Get it.

While a watch that tells the time is useful, one that does that and lets you know exactly what day and date it is can keep you on schedule better than you might imagine. In addition to the time, day, and date functions, this watch has a 24-hour tracker and world time function, so you can know what time it is anywhere in the world.

With a stainless steel case and bracelet, the timepiece oozes elegance and durability. Its blue dial is highly legible and attractive, and is sure to get you plenty of compliments. It also has a scratch-resistant mineral crystal and 100 meters of water resistance. The Japan-made quartz movement inside operates off of solar energy, provided by the Eco-Drive technology within.

Related: Amazon is selling $100 Reebok sneakers for $60, and shoppers love how ‘comfortable and lightweight’ they are

Amazon customers raved about this watch. One called it “my favorite watch,” adding, “I fell in love with how it looked…It feels and looks like a very high-quality watch. All the functions work perfectly and are not hard to read.”

Another touted the “beautiful blue dial,” and said, “I love good-looking watches…but if the design can incorporate useful functions as well, it’s a winner for me. And this watch does all of that.”

The Citizen Calandrier Eco-Drive Watch will let you know exactly when you are, and it can do so in style. It can also do so for only $260 at the moment, so why not take a chance? We would never waste your time if it weren’t worth it.

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