But with NTL due to change its name to Virgin Media next year, NTL also has UK commercial broadcaster ITV in its sights as a takeover target, part of its plans to offer television as well as broadband, fixed-line and mobile telecommunications services.

CNN: Branson, Murdoch square off in media war

Given the tough operating climate and reductions in dividends, the Stoxx Europe 600 Telecommunications index, made up of 20 fixed-line and mobile telecom companies from across Europe, has fallen 4.1% over the past year.

WSJ: Investors Hang Up on Europe's Telecom Stocks

In telecommunications, mobile phones have for years been disrupting the incumbent fixed-line providers, but now they themselves are in danger of overshooting.

ECONOMIST: Stand by for a spot of creative destruction