Austrian mobile operators T-Mobile and Orange could reportedly sign an agreement before the end of the month to completely merge their respective networks.
The operators are planning to create a joint venture to head the enlarged network, according to…
Austrian mobile operators T-Mobile and Orange could reportedly sign an agreement before the end of the month to completely merge their respective networks.
The operators are planning to create a joint venture to head the enlarged network, according to reports citing the Austrian Press Agency (APA), which quoted sources.
France Telecom, which owns 35% of Orange in Austria, and T-Mobile parent Deutsche Telekom declined to comment on the speculation. PE firm Mid Europa, which owns the other 65% of Orange Austria, was unable to comment before the press deadline.
A full network merger would build on a partnership announced by the Austrian firms in July, when they revealed plans to jointly use their 3G infrastructure in rural areas.
Under this agreement, a number of existing rural 3G stations will be mutually used by both operators to increase network coverage and improve capacity. Each operator is contributing several hundred stations, but spectrum will not be jointly used like in the UK, where FT and DT cooperate under their JV Everything Everywhere (EE).
Speaking to TelecomFinance in February, Richard Moat, then CFO of EE, said FT and DT could merge mobile assets in other countries following the success of their UK JV.
“People like what they’re seeing,” he said, highlighting the multi-billion pound synergies DT and FT have made through the £5.125bn deal carried out by Perella Weinberg, BoA Merrill Lynch and JPMorgan.
However, Olaf Swantee, who on 1 September moved from FT’s board to replace Tom Alexander as CEO of EE, was later quoted in June saying it was unlikely that the French and German operators would replicate their UK model in other markets.
Despite this, Swantee reportedly added that FT was still open to signing more network-sharing agreements.
In addition, FT confirmed in June that it does not intend to remain in countries where it is only a minority shareholder, following a review of its European asset portfolio.
As well as the 35% it holds in Orange Austria, FT also holds a 20% stake in Portugal’s Sonaecom, which owns Portuguese mobile operator Optimus.
