TDC acquires fibre-optic network for DKK425m

Danish incumbent fixed line operator TDC has announced it has agreed to buy the fibre-optic communications network of Danish energy group DONG Energy for around DKK425 million (USD85 million). Approximately DKK325 million of the expected total purchase price will be paid in cash on completion of the agreement, which is expected to take place before the end of 2009, while the remaining sum will depend on the future performance of the acquired activities. TDC explained that the network will be operated as an open network with service provider access. ’I am pleased that today we can pass the baton to TDC, the right company to purchase our fibre communications network,’ commented Lars Clausen, executive vice-president of DONG Energy, adding: ’The need to communicate and transmit data is accelerating worldwide, and fibre-optics is the strongest technology. I wish TDC all the best and hope that many customers will benefit from the continued focus in this field.’ The telecoms company will acquire activities relating to the rollout and operation of the network in Greater Copenhagen and Northern Zealand, while DONG will retain ownership of part of the backbone used to monitor operation of the Danish electricity grid.