Mobistar eyeing Telenet, reports say

20 Oct 2006

Belgian wireless operator Mobistar says it is studying a number of possible acquisition targets, including the country’s leading cable network operator Telenet, according to Reuters. Mobile penetration in Belgium has long since overtaken fixed line teledensity, but recently growth has slowed and the country’s three operators — fixed line PTO affiliate Belgacom Mobile, Dutch giant KPN subsidiary BASE and Mobistar, majority owned by Orange — are all looking to find new strategies to boost revenues. Mobistar entered the broadband market in October 2005, as part of plans to establish itself as a provider of bundled mobile and broadband services. However, in July 2006 it revealed that it had signed up less than 10,000 ADSL customers, a lower number than expected, which it attributed to a ‘difficult market situation in Belgium and the still-inadequate brand awareness of its ADSL offer’. The acquisition of Telenet, Belgium’s second largest broadband provider with a 32% market share at mid-2006, would help it gain the foothold in the ISP market it desires. ‘Opportunities such as Telenet are being evaluated, but there is no concrete plan or talks,’ Mobistar spokeswoman Patti Verdoodt told Reuters.

Belgium, Orange Belgium, Telenet (incl. BASE)