Alternative operator Tele2 Germany is to pay a net SEK 280m (E31m) to exit a network JV with local operator QSC that was due to end on 31 December 2013.
QSC has agreed to purchase Tele2’s 32.5% of JV Plusnet, which was costing the latter E20m every year…
Alternative operator Tele2 Germany is to pay a net SEK 280m (E31m) to exit a network JV with local operator QSC that was due to end on 31 December 2013.
QSC has agreed to purchase Tele2’s 32.5% of JV Plusnet, which was costing the latter E20m every year in operational and capital expenditure.
According to Tele2, exiting the JV will save it a total of around E67m, meaning the transaction will result in a negative one-off item of approximately E25m.
Following the transaction, which is still subject to regulatory approval, Tele2 Germany plans to sign a new vendor agreement with QSC for xDSL and telephony services.
“In order to provide our German customers with the best deal over the coming years we are convinced that the right way forward for us in Germany is to act as a pure service provider,” said Henrik Ringmar, Tele2 Germany’s market area director for Western Europe.
“Through the exit of the network company Plusnet, we achieve this objective while being able to enjoy the cost savings that the transaction will bring us. We are also very satisfied with the wholesale prices that QSC has offered us.”
Plusnet was formed in 2006, with QSC agreeing to focus on the JV’s corporate offering while Tele2 concentrated on the residential market.