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Mergers and acquisitions shake-up Austria’s telecommunications market

Strategic Highlights
Published: 2018-03-15

In December 2017, Liberty Global announced that it has agreed to sell its Austrian subsidiary (UPC Austria) to Deutsche Telekom’s (DT) T-Mobile Austria, for EUR 1.9bn (around USD 2bn). Though the transaction is still subject for the regulatory scrutiny, InfoCom believes that the said merger will intensify further the competition in the Austrian telecommunications market once approved. The said acquisition came on the heels of Hutchison Drei’s Tele2 takeover which was finally approved by the regulator in October 2017. The said transactions will enable both T-Mobile Austria and Hutchison Drei to become fully convergent operators and thus provide further challenge to the incumbent, Telekom Austria. As per InfoCom’s quarterly monitoring, T-Mobile is expected to have more than 750 000 fixed access lines from UPC Austria, adding to its 3.3 mobile subscribers (-5% YoY) as of end-2017. Meanwhile, Hutchison will take over nearly 110 000 fixed access lines of Tele2, adding to its nearly 4mn mobile subscribers during the same period.

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Published: 2018-03-15

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