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Telekom Austria may merge mobile and fixed
13 November 2009
Telekom Austria is considering merging operations of mobile and fixed services
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Telekom Austria
Mobilkom
Deutsche Telekom
Nemsic
VimpelCom
Comment: The relationship between Telekom Austria’s domestic fixed line business and its mobile company, Mobilkom, has always been close in terms of management — previous group CEO Boris Nemsic, now CEO of VimpelCom, came from the mobile side, for example — but they have retained separate structures and head offices. But Austria is a land of high mobile penetration and the fixed-line business is focussing on new services. It makes sense to combine them.
Telekom Austria is considering a merger of its domestic mobile and fixed line divisions. The partly state-owned telecom provider is aiming to reduce its costs by jointly offering mobile and fixed line products.
The group’s management and supervisory board will be analysing the options for the move.
Telekom Austria separated its mobile and fixed-line businesses three years ago. At the time the company was said to be preparing for the listing of its mobile division with the partition.
Telekom Austria has also reported a third quarter net loss due to write-downs of Eastern European assets. It has also reduced its full-year results guidance, primarily because of currency depreciation in Eastern Europe.
Deutsche Telekom is also making a similar move by merging its units. The German carrier is also looking to cut costs and secure additional revenue. GTB