Telekom Austria has announced that it will implement the planned merger of its wireless and fixed line operations by registering a new subsidiary, A1 Telekom Austria, this Thursday. The company first declared its plans to merge its two domestic subsidiaries – Mobilkom Austria and Telekom Austria – at the end of February. The merger is expected to promote product synergy and prevent the decline in landline subscribers.
According to TeleGeography’s GlobalComms Database, Telekom Austria first mooted a merger in November 2009 on the basis that such a structure would cut operational costs while allowing it to further converge its fixed line broadband services with its HSPA mobile data networks. Although the company says that the merger plans will initially impact its financial results, it hopes that the plan will begin to positively effect earnings by end-2012.