As corporate giants look to consolidate across Europe, France Telecom and Danish provider TDC today announced an agreement to merge their Swiss holdings, Orange Switzerland and Sunrise Communications. FT will pay €1.5 billion to TDC and after some more financial jiggery-pokery will become 75% shareholder, TDC will own the remaining 25%.
The new company will have about 3.4 million mobile and 1.1 million fixed and broadband customers. Around 38% of mobile and 13% of fixed line and broadband subscribers. It’s claimed better 2G and 3G coverage, broadband capacity and overall quality will be a key outcomes of the merger.
Statements from both companies are seasoned with the usual corporate buzz words; milestone, commitment, consolidation, synergies, savings. Undoubtedly there will be job losses. This is a case of two players, each with about 20% of the pot combing powers because they realise they have more to lose competing with each other.
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Originally published at OneMobileRing.com