Several large European telecommunications companies announced plans today to retrench from global ambitions nursed during the stock market boom, by writing down the value of assets, agreeing to suspend unprofitable operations and selling some units.

In a striking reversal of a bold yet improbable plan to build a wireless network across Europe, the Spanish company Telefonica said it would "freeze" mobile operations in Germany, Austria, Italy and Switzerland.

Telefonica and Sonera will each make a US$3.98B write-down on the wireless licenses that will now go unused. Telefonica is playing the executive shuffle in an attempt to "look busy!" while the investors are watching.

France Telecom is trying to reduce its 60+B euros of debt by selling off a stake in its broadcasting division. But there are dangers. BT did this and now struggles to find growth. For the quarter ended June 30, BT earnings fell to 275M euros, from 4.4B euros in the period last year. Revenue fell 17%.

[Various French and Spanish telecoms are also bleeding cash in Latin America and are struggling to find a way out of the economic disasters underway there.]