Bulgaria's M-Tel Acquires 2 Internet CompaniesBusiness | September 15, 2010, Wednesday // 13:56| views
M-Tel will acquire 100% of the two Bulgarian cable operators Megalan Network and Spectrum Net. Photo by BGNES
The leading Bulgarian operator Mobiltel has signed pre-arrangements for the acquisition of two Bulgarian cable operators, Megalan Network and Spectrum Net.
The price of the merger is about EUR 70 M. The deal is expected to be finalized after approval by the Competition Protection Commission.
M-Tel, which is part of Telecom Austria Group, will acquire 100% of the two Internet providers. However, both companies will continue to work independently for a period of about 18 months.
"This is a strategic step which will allow Mobiltel to strengthen its position of an integrated telecom operator and will provide our growth on the already existing market," said Andreas Maierhofer, CEO of M-Tel.
With the acquisition of the two cable operators, M-Tel will become one of the biggest suppliers of broadband services, especially in the big Bulgarian cities.
"Our goal is to meet the increasing demand for combined services of fixed and mobile telephony, fixed and mobile Internet, and in addition to these – television," said Maierhofer.
"The convergence of fixed and mobile communication has become a key feature of the telecommunication market. This trend is clearly visible in Telekom Austria Group's domestic market and is now also increasingly shaping the competitive environment in Bulgaria. As such, the planned acquisition of two fixed net operators will be the natural step for Mobiltel," said Hannes Ametsreiter, CEO of Telekom Austria Group.
M-Tel is planning to launch new services, bundled with the two cable companies. Some of the products will be released on the Bulgarian market by the end of 2010.
Spectrum Net is present in 13 Bulgarian cities and is focused on broadband Internet and voice services for corporate clients and households.
Megalan is a leading provider of home broadband Internet for Sofia. The portfolio of the company includes IPTV services as well.
In 2010, M-Tel celebrates its 15th year on the Bulgarian market and more than 5 million customers.
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