Orange enters Austrian market with One purchase
Updated with Telekom Austria reaction
FT Orange and private equity firm Mid Europa have announced that they will buy third placed Austrian mobile operator One from its existing shareholders €1.4 billion. Mid Europa will own a controlling stake in the company (65%), with France Telecom owning the balance
One, which has 2 million subscribers, will be Mid Europa's sixth investment in mobile telephony in the Central European region. As third placed company, with most of its customers in urban areas, subscriber growth looks achievable by attacking number one and two placed players mobilkom (10million+ subs) and T-Mobile subsidiary tele.ring, as well as extending its geographic reach.
But Elisabeth Mattes, Spokesperson for Telekom Austria Group said that in her view the entry of Orange into mobilkom’s home market was no great cause for concern. She suggested that to change One’s strategy of concentrating on young, urban consumers would be too expensive, and floated the possibility of further consolidation between One and 3 Austria, which has a similar customer base, as a way to cut costs and achieve growth.
She also said that the new operator might be well-advised to concentrate on the mid-level enterprise market, which also tends to be based in the urban areas, but doesn’t require the international reach that T-Mobile can service.
Mattes added that she’d heard “a rumour” that the new management would be putting their own people in at the top levels of management, and floated the name of Michael Krammer as the possible new ceo. Krammer of course is the ex-ceo of tele.ring as well as E-Plus in Germany.
All this spinning from the incumbent deserves some answers of course, and we have an interview planned with the managing partner of Mid Europa on Monday. Sorry, that’s the earliest he could speak to us about his plans. You’ll have to wait till then if you want more on this story from us.
Share this article with others
Post to del.icio.us
Printed from http://www.mobileeurope.co.uk/news_analysis/113008/Orange_enters_Austrian_market_with_One_purchase.html
Comment on this article
Skip to comments
We encourage users to analyse, comment on and even challenge Mobile Europe's articles, including the one above - 'Orange enters Austrian market with One purchase'
User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site.
Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. We will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site.