Telekom: the telco that likes to say: ‘Yesss!’

21 Nov 2012

A1 Telekom Austria wants to go ahead with its planned EUR390 million (USD499 million) acquisition of ‘budget’ mobile virtual network operator (MVNO) Yesss! from Orange Austria, despite ongoing cashflow issues and regulatory interference. As previously reported by TeleGeography’s CommsUpdate, the mooted sale of Yesss! is tied to the proposed takeover of its current owner, Orange, by Hong Kong’s Hutchison Whampoa. The two parallel deals were agreed in February this year, but the transaction has stalled in the face of stern regulatory opposition, both in Vienna and Brussels, where European Union regulators have taken an interest in the long-running deal. Although the transfer of around 750,000 Yesss! subscribers would allow market leader Telekom to boost its market share to around 47%, the EU regulator’s objections seemingly centre on the reduction of four mobile players to three.

Austria, A1 Telekom Austria, Orange Austria, Yesss!