AT&T Inc is considering its move to bid for a European carrier such as Vodafone Group Plc. It is, however, coming across some concerns raised by investors about cut-throat competition and complex regulations in the continent.

AT&T Chief Executive Randall Stephenson said on Tuesday that upgrading European networks is a huge opportunity with lucrative profits one can make from high-speed wireless services already seen in the United States.

If telecoms bankers familiar with the matter are to be believed, the No. 2 U. S. wireless operator is looking forward to acquire a pan-European carrier. The possible targets comprise Vodafone, Britain's largest mobile operator EE and Spain's Telefonica.

However, some investors suggest that there is a need to have a little more patience before giving it a go ahead as there is a fierce competition in markets like France, Britain and Italy. Also, European regulation of wireless airwaves should be meticulously considered because of their complex nature.

Mike Wetherington, an analyst at Barrow, Hanley, Mewhinney & Strauss, said that it does not seem to be a good idea for AT&T to do anything in Europe. As per Reuters data, the firm is AT&T's 14th biggest shareholder.

He said, "We have stayed away from a fair amount of the European telecom names because of a discomfort with, among other things, regulation and competition".