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    HomeInsightsOrange enters Austrian market with One purchase

    Orange enters Austrian market with One purchase

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    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.