Sunrise and UPC reportedly in ‘advanced’ takeover talks

4 Feb 2019

Swiss full-service provider Sunrise is in advanced talks to purchase Liberty Global’s local subsidiary UPC Switzerland – previously known as Cablecom – the Financial Times reports, citing people with direct knowledge of the situation. Further details are scant, however, although UPC Switzerland CEO Eric Tveter had confirmed in September last year that the company believed consolidation in the Swiss market ‘made sense’ and, whilst the operator is ‘well-equipped for an independent future,’ it was nevertheless considering strategic options. As noted by TeleGeography’s GlobalComms Database, Swiss regulators have been reluctant to allow the narrowing of competition in the mobile sector by consolidation, but such a move has yet to be tested in the broadband segment. The combination of Sunrise and UPC would establish a de facto duopoly of market leader Swisscom – commanding a market share of roughly 52% – and the combined entity (controlling around 30% of the sector), with the next-largest ISP serving less than 5% of the market.

Switzerland, Liberty Global (incl. LGI), Sunrise Communications, Swisscom, UPC Switzerland