Rising competition and the high costs of implementing 3G (third generation) wireless networks will lead to a major shakeout in Europe’s mobile telecommunications industry, according to a new report from Forrester Research BV in Amsterdam.

Mobile carriers’ operating profits will disappear by 2007 and take six years to return, said analyst Lars Godell in a statement Thursday. He added that he expects consolidation to leave only five major players still standing in Europe by 2008.

Godell listed as certain winners of the shakeout Vodafone Group PLC, Deutsche Telekom AG’s subsidiary T-Mobile International AG, France T