Tele2 Austria offloads MVNO

8 Oct 2007

Tele2UTA in Austria has sold its mobile resale operations to the Telekom Austria Group for approximately EUR7 million (USD9.9 million) on a cash and debt-free basis. Tele2’s Austrian mobile virtual network operator (MVNO) had 131,000 subscribers at the end of June. Tele2’s president and CEO, Lars-Johan Jarnheimer, says the sale is due to the fierce competition in the Austrian mobile market: ‘Our strength in Austria lies within our infrastructure-based fixed and broadband operation. However, the current market environment leaves us little room for a profitable and sustainable MVNO operation.’