LONDON (CNNfn) - European markets finished the session in positive territory Monday, with leading telecom stocks among the gainers after British Telecommunications ditched its bid for an Italian third-generation mobile phone permit, giving rivals cheaper-than-expected licenses.
Frankfurt's Xetra Dax edged up 2.44 points, or 0.04 percent, to 6,620.87, with Deutsche Telekom (FDTE) and steel maker Thyssen Krupp (FTHA) leading gains.
 The blue-chip CAC 40 in Paris gained 0.5 percent to 6,182.34, led by index heavyweight France Telecom (PFTE) and TotalFina Elf (PFP)
London's benchmark FTSE 100 index rose 0.6 to 6,315.9, with rail network operator Railtrack (RTK) soaring 5.6 percent after the rail industry regulator said he will permit the company to earn more profit in order to invest in improving the right of way.
Among other European markets, the AEX index in Amsterdam rose more than 1 percent, Milan's MIB 30 added 0.9 percent, and the SMI in Zurich climbed 0.6 percent.
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The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, rose 0.8 percent to 1,615.94, with its telecom sub-index up 2.2 percent.
In the U.S. midday, the Nasdaq composite rose 0.3 percent, while the blue-chip Dow Jones industrial average climbed 0.8 percent to 10,313.90.
In the currency market, the euro fell to 83.85 U.S. cents from 84.15 cents in late New York trade Friday.
 Europe's telecom sector sparkled after Blu, one of Italy's four largest mobile-phone operators, withdrew from the bidding for a next-generation mobile-phone license there. That could cut the cost the other bidders - such as the Omnitel venture owned by British mobile-phone titan Vodafone Group (VOD) - will have to pay.
Shares of Vodafone rose 1.8 percent in London while Telecom Italia Mobile, or TIM, added 3.8 percent in Milan. Power company Enel, which with France Telecom controls mobile phone operator Wind, nosed up 0.6 percent. France Telecom (PFTE) gained more than 5 percent, topping the CAC gainers.
New entrant to the mobile phone market Tiscali, which is bidding with Hong-Kong telecom-to-property conglomerate Hutchison Whampoa, jumped 8.1 percent.
 British Telecommunications (BT-A), a 20 percent shareholder in Blu, had faced pressure to raise its stake, to take some of the cost burden off its joint venture partners. BT fell 1.1 percent in London, while Italy's Autostrade, another leading Blu investor, fell 3 percent.
Elsewhere in the sector, Deutsche Telekom (FDTE) climbed 6.1 percent after the Financial Times said the German telephone market leader was considering splitting its Internet arm T-Online International (ATOI) into domestic and international business units. T-Online fell 2.2 percent.
Interest in Swisscom unit?
And in Zurich, shares of Swisscom climbed 2.8 percent following a report in German weekly magazine Der Spiegel that Vodafone and Deutsche Telekom both are interested in acquiring a stake in Swisscom's mobile-phone business.
Techs tumble
Tech shares were weaker across Europe. German electronic component maker Epcos (FEPC) lost 1.3 percent while British network equipment maker Marconi (MNI) slipped 1.9 percent and rival Alcatel (PCGE) fell 0.6 percent after U.S. peer Lucent Technologies (LU: Research, Estimates) forecast a drop in revenue.
Chip designer ARM Holdings (ARM) fell 4.9 percent while German chipmaker Infineon Technologies (FIFX) dipped 1.6 percent.
Europe's largest software firm, SAP [FSE:FSAP3], fell 2.5 percent.
In London, industrial controls maker Invensys (ISYS) rose 2.2 percent amid upbeat analyst comments and speculation it might become a takeover target after U.S.-based General Electric (GE: Research, Estimates) agreed to buy compatriot Honeywell (HON: Research, Estimates) for $45 billion.
Engineering company GKN (GKN) climbed 4.3 percent and defense contractor BAE Systems (BA-) added almost 5 percent while French aerospace firm EADS (PEAD) shed 3 percent ahead of its results Wednesday.
 WPP (WPP), the world's biggest advertising agency, rose 1.6 percent after posting a 21 percent rise in third-quarter revenue as new business poured in from such companies as Ford Motor (F: Research, Estimates) and Nike (NKE: Research, Estimates) amid strong demand during the Olympics and the U.S. presidential election campaign. WPP said its net new billings rose to £830 million ($1.20 billion) in the three months ended Sep. 30 from £730 million a year earlier.
Media stocks weakened in London. News and data provider Reuters Group (RTR) fell 1.3 percent while television and publishing company Pearson (PSON) dropped more than 3 percent. Music firm EMI Group (EMI) lost 4.7 percent.
In Paris, oil producer TotalFina Elf (PFP) clambered up 1.9 percent. Chile's No. 2 power generator, Chile Gener, said Sunday the French firm plans to buy 20 percent of the company and take 80 percent of its Argentine power assets in an $810 million deal.
German utility RWE (FRWE) dipped 2.9 percent after a French newspaper report that Vivendi (PEX) had rejected its  30 billion ($25.25 billion) offer for Vivendi's separately listed waste, water and energy division Vivendi Environnement. Vivendi rose 0.3 percent, while its majority-owned unit Vivendi Environnement (PVIE), spun off earlier this year, dropped 0.3 percent.
Chemicals firm Degussa Huels (FDHA) shed 3.4 percent in Frankfurt, while steel maker Thyssen Krupp jumped 5.3 percent. 
-- from staff and wire reports
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