Deutsche Telekom (DT) is considering acquiring fixed-line operators and ISPs in Austria, Poland and the Netherlands.
DT’s head of Europe, Roland Mahler, said that fixed/mobile convergence is a precondition in order to leverage the market and better serve…
Deutsche Telekom (DT) is considering acquiring fixed-line operators and ISPs in Austria, Poland and the Netherlands.
DT’s head of Europe, Roland Mahler, said that fixed/mobile convergence is a precondition in order to leverage the market and better serve customers by offering fixed, mobile, TV and IPTV services.
One analyst was cited speculating that potential targets in Poland could be fixed-line operators Exatel, Netia, and Telefonia Dialog.
DT’s subsidiary there, Polska Telefonia Cyfrowa (PTC), is the number three cellco, operating under the ERA brand.
It has mobile subsidiaries in Austria and the Netherlands, both under the T-Mobile brand.
While buying fixed-line assets in Poland is a valid option, Mahler emphasised the company would first spend the next six months focusing on a rebranding exercise, which will see the ERA brand being replaced by T-Mobile.
A DT spokeswoman said the company’s M&A strategy had not changed. She said: “Going down the path of fixed-mobile convergence by developing fixed, broadband and TV service offers in our mobile-centric assets is one alternative we are looking at.” Acquisition rumours have surrounded DT of late. Reports in late May suggested it was in talks to acquire the 49 per cent state-owned stake in incumbent Slovak Telecom.
Shortly after, the Greek government exercised a put option to sell a 10 per cent stake in incumbent OTE to DT for around ?400m. After the transaction, DT will own 40 per cent of the operator, with the Greek state owning 10 per cent (see p9).
The news comes amid a growing trend for in- country consolidation. The world’s largest current sector deal also involves Deutsche Telekom, which has agreed to sell T-Mobile USA to AT&T for US$39bn. Of this, DT said it planned to spend US$13bn of the net proceeds to pay off debt and US$5bn on share buybacks.
CEO Rene Obermann ruled out large acquisitions (involving billions of euros), but said he expected small acquisitions focusing on the priorities of cloud computing and mobile internet.
Deutsche Telekom’s VC unit T-Venture has acquired a stake in telemedicine services provider BodyTel, which provides monitoring tools to manage chronic conditions.
“Analysts expect double-digit growth in telemedicine,” said Axel Wehmeier, head of the strategic business area “Health” at DT. “Acquiring this stake is also an important element of our group strategy and intelligent networks.” The company already partners with T-City, a joint workshop between DT and the city of Friedrichshafen, for diabetes management.
The Federal Cartel Office has submitted an application to the EU Commission to transfer a probe into the deal between US media giant Liberty Global and local number three cableco Kabel BW to Germany.
A spokesman for the regulator said the deal would mainly affect domestic competition, adding the transaction was originally registered with the Commission for formal reasons.
In late March, Liberty Global finally announced it would buy Kabel BW for ?3.16bn, after weeks of speculation about Swedish private equity firm EQT’s favoured exit strategy.
Regulatory matters may be the main stumbling block, since Liberty would presumably merge Unitymedia and Kabel BW, the respective number two and three players.
The Cartel Office has previously not favoured consolidation among the leading cablecos, but in this case its main concern is probably Liberty’s potentially excessive control over content rather than its footprint.
