NSA Fallout Hits AT&T's Ambitions In Europe

AT&T’s ambitions to expand in Europe have run into unexpected hurdles amid the growing outcry across the region over surveillance by the National Security Agency.

German and other European officials said any attempt by AT&T to acquire a major wireless operator would face intense scrutiny, given the company's work with the US agency's data-collection programs. Resistance to such a deal, voiced by officials in interviews across Europe, suggests the impact of the NSA affair could extend beyond the diplomatic sphere and damage U.S. economic interests in key markets. AT&T Chief Executive Randall Stephenson has signaled repeatedly in recent months that he is interested in buying a mobile-network operator in Europe, highlighting the potential for growth on the continent at a time when the US company faces headwinds at home. Europe's anger over the NSA's collection of electronic communications has reduced the likelihood a European deal could happen anytime soon.