Telekom reportedly in talks to acquire Posta Net

28 Jul 2021

State-owned full-service provider Telekom Srbija is reportedly in talks to acquire Posta Net, the cable TV and internet business of another government-owned entity, Posta Srbija. According to Demostat, Telekom – which operates under the MTS brand – had confirmed earlier this month that the two parties were involved in talks but did not provide any further information at that time, promising instead to explain the matter in detail shortly. The paper notes that the two parties have subsequently refused to comment further on the proposed tie-up. Telekom is facing mounting criticism for its expenditure in the internet and content distribution markets, particularly its acquisition of small cable operators, for several of which it was said to have paid ‘incomprehensibly high sums’. The acquisition of Posta Net would give Telekom a small lead in market share in the content distribution segment, with a combined total of 48.0% of the customers, compared to the 45.6% claimed by its chief rival SBB in Q1 2021 (based on the most recent data from the telecom regulator). Telekom already leads the broadband market, meanwhile, and the consolidation of Posta Net would have little impact on its operations or standing in the space.

Serbia, Regulatory Agency for Electronic Communications (RATEL), SBB, Telekom Srbija (MTS)