German incumbent Deutsche Telekom (DT) is considering acquiring fixed-line operators and ISPs in Austria, Poland and the Netherlands, according to media reports.
Bloomberg reported yesterday that DT’s head of Europe, Roland Mahler, had said that…
German incumbent Deutsche Telekom (DT) is considering acquiring fixed-line operators and ISPs in Austria, Poland and the Netherlands, according to media reports.
Bloomberg reported yesterday that DT’s head of Europe, Roland Mahler, had said that fixed/mobile convergence is a precondition in order to leverage the market and better serve customers by offering fixed, mobile, TVnd IPTV services.
The report cited one analyst speculating that potential targets in Poland could be fixed-line operators Exatel, Netia, and Telefonia Dialog.
Deutsche Telekom’s subsidiary in Poland, Polska Telefonia Cyfrowa (PTC), is the number three cellco, operating under the ERA brand.
It also has mobile subsidiaries in Austria and the Netherlands, both under the T-Mobile brand.
Mahler reportedly said that while buying fixed-line assets in Poland was a valid option, DT spend the next six months focusing on a rebranding exercise, which will see the ERA brand being replaced by T-Mobile.
A DT spokeswoman told TelecomFinance that the company’s M&A strategy had not changed.
She said: “We have a strong standing in our European footprint and are continually evaluating how we can best leverage our markets. 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.”
She added that they would check every opportunity against stringent guidelines evaluating whether they made economic sense.
Acquisition rumours have surrounded DT in recent days.
Yesterday, reports suggested that DT was in talks to acquire the 49% stake held by the Slovakian state in incumbent Slovak Telecom.
Today, the Greek government said it was seeking financial advisers to exercise a put option of a 10% stake in incumbent OTE, and that it would also sell a further 6%. DT has the right to acquire the stake. (See “Greece to sell OTE stake” article.)
The news comes amid a growing trend for in-country consolidation. The largest current deal also involves Deutsche Telekom, which has agreed to sell T-Mobile USA to AT&T for US$39bn.
DT said at the time that it would spend US$13bn of the net proceeds on paying off debt.
Another US$5bn would go on share buybacks, which will take place after the transaction closes, assuming it is approved by the relevant authorities.
The Financial Times reported on 11 May that DT’s CEO had ruled out any more large acquisitions (involving billions of euros), although he did say that he expected small acquisitions focussing on the priorities of cloud computing and mobile internet.
