Europe's two largest carriers appear to be on the brink of financial disaster―engulfed in debt and unable to do too much to cut it back. Happily for them, two of Europe's biggest state machines remain as their primary backers. Forthcoming elections and the credibility of industrial policy mean that heads, amazingly, have so far failed to roll... Take two major European PTOs. Load them with debt.Then stand back and wait for the implosion. The fact that the last part of that combustible financial equation has not yet happened is itself something to behold. Never underestimate the power of the state when it comes to involvement in tele-politics. Between them, France Telecom (FT) and Deutsche Telekom (DT) are groaning under a cool EUD130bn in debt. In each case, there may be more to follow and there are worrying signs that high-profile plans for debt reduction are being put on hold.
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