Danish incumbent TDC has decided to divest Talkline, its mobile virtual network operator (MVNO) business in Germany, to rival MVNO debitel AG. The business has been given a price tag of DKK4.2 billion (USD753.9 million, EUR560 million). The sale is expected to result in a post-tax gain of DKK3.3 billion. Jesper Theill Eriksen, Head of TDC’s international activities, said, ‘Talkline has been a sound investment for TDC. However, TDC has its strategic focus on the Danish and Nordic markets. Therefore, it is natural to divest the business to a telecommunication provider that is already present in the German market. The new owner is therefore able to strategically take advantage of acquiring Talkline, which is also reflected in the price we have been offered.’ The sale is subject to approval from the EU competition authorities.
According to TeleGeography’s GlobalComms database, Talkline launched MVNO services in 1992 and ended 1Q2007 with 3.7 million customers. debitel had an estimated 9 million subscribers at the same time, making it Germany’s fifth largest operator by customers, and the largest MVNO.