Incumbent operator Telekom Austria remains open to the idea of merging its fixed and mobile units to provide a more cost efficient service.
The company’s supervisory board had requested that the management examine the option.
In a statement Telekom…
Incumbent operator Telekom Austria remains open to the idea of merging its fixed and mobile units to provide a more cost efficient service.
The company’s supervisory board had requested that the management examine the option.
In a statement Telekom Austria said: “The management board was asked by the supervisory board to look into potential strategic options in detail and to evaluate their advantages and disadvantages. The results of this analysis will be discussed by the management and supervisory board in their next meetings. Telekom Austria Group wants to emphasize that the result of this evaluation is open.”
Telekom Austria, which merged its fixed and mobile assets in 2006, would be following in the footsteps of Deutsche Telekom if it opted for the merger of assets.
Telekom Austria operates mobile services through its Mobilkom subsidiary.
SUBHEAD: TA to reduce staff
Telekom Austria has struck an agreement with the Austrian government to offload surplus civil servant employees to the police force.
Along with Austrian postal service Oesterreichische Post AG, Telekom Austria will be able to reduce its staff and therefore cut costs.
Telekom Austria, which was majority privatised in 2000 will continue to pay the wages of transferred staff until 2014 when the government will take over the cost.
SUBHEAD: 3 deal on the cards?
As a new wave of consolidation takes place across Europe’s mobile markets, there has been speculation that Telekom Austria may look to acquire Hutchison Whampoa’s 3 Austria, in a move that would give the incumbent a mobile market share of nearly 50%. However, Telekom Austria CFO Hans Tschuden said at a recent telecoms conference that he did not expect that regulators would allow such a move but the company could look to buy some of 3’s network assets, should the opportunity arise.
* Telekom Austria said that it may launch a share buyback in the second half of 2010, should market conditions permit.
CFO Hans Tschuden said that a third of the company’s cash flow minus its dividend could be put towards the buyback scheme.
