Director Tele2: Dutch branch can not survive independently

Nov

16

2018

Tele2 says that the Dutch branch as a mobile provider can not survive on its own. The CEO presumably does this in a last attempt to convince the European Commission that Tele’s acquisition of Tele2’s Dutch branch must continue.

Tele2 director Anders Nilsson said at a telecom conference in Barcelona according to Reuters that the independent mobile branch of Tele2 is not a ‘sustainable position’. “It is actually a lack of scale”, according to the director. “It is a market where providers combine fixed and mobile services and that is a possibility that we do not have.”

Nilsson refers to KPN and VodafoneZiggo, which combine both fixed services with mobile subscriptions and can give customers discounts and benefits. In addition to a mobile network, KPN has copper and fiber optics. VodafoneZiggo has a cable network in a large part of the country. T-Mobile and Tele2 do not have their own fixed networks.

The plea is in line with the reasoning used by T-Mobile and Tele2 since the announcement of the acquisition ; the acquisition is not only a combination of the two smallest mobile providers, but above all a competitor for KPN and VodafoneZiggo on the fixed market. Thanks to the merger , T-Mobile hopes to be able to recoup the construction of its own fiber optic network faster.

Deutsche Telekom has not made any concessions to allow the acquisition to take place, such as giving up the frequencies of Tele2 in favor of a newcomer. The European Commission had this autumn questioned the takeover. By no later than two weeks, it must be known whether the European Commission allows T-Mobile to take over the Dutch branch of Tele2.

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