5.8 C
December 9, 2022

Romtelecom-Cosmote, closer to merger

According to Nikolai Beckers, CEO of the two telecom operators, talks are at the beginning, the priority being that the two companies become functional in one and provide integrated landline-mobile services.

The shareholders of the two telecom operators Cosmote and Romtelecom and the Government of Romania have started talks on a merger of the two companies controlled by the Hellenic OTE group.
‘The merger is at the beginning, we haven’t even set the stages of the process. It is too early to speak about lay-offs which are actually not one of my priorities, as a Romtelecom-Cosmote merger. My priority is to make the two companies work together as one and offer integrated landline-mobile services. On the other hand, the business mode’ must be efficient. From the merger of the two companies we have to create the most appropriate company for the Romanian market, one that can bring a sustainable profit to shareholders. If they are not efficient, there will be no money to invest in new technologies and then we will enter a negative spiral that will hurt everybody – workers, shareholders and customers’, Nikolai Beckers, CEO Cosmote and Romtelecom, said yesterday, at his first meeting with the press since he took over his new job on April 1. He stressed that the discussion between the shareholders of the two operators were at the beginning and that the process was not going to be completed in the very near future.
‘As far as I am concerned, the economic logic of a merger of these two companies is obvious. We have discussed the convergence of fixed-mobile services that are now being provided by two distinct operators. It is normal that we also merge from a legal point of view, not just operationally, if we want to have a smooth and faultless business process. It’s so much better with just one bill, one call-centre, one retail chain and one marketing’, Beckers pointed out.
Beckers, former CEO of T-Systems France, a division of Deutsche Telekom, also said the priority of his term was to develop the two operators that had brilliant prospects on the Romanian market.
Nikolai Beckers further said the objective of his term regarding the mobile telephony was to continue investing in the 4G technology and, for the landline telephony – the FTH (fibre to the home) service, both requiring very high investment.
Last year, Romtelecom posted EUR 619.6 M revenue and a 39.5 per cent higher EBITDA profit, from EUR 119.1 M to EUR 166.1 M, supported by a cost cutting policy.
Cosmote Romania in 2012 posted EUR 462.8 M revenue and an operating profit up 19.4 per cent to EUR 119.5 M.

Related posts

X-Trade Brokers: BNR must steadily intervene to preserve exchange rate


Dendrio Solutions signs a partnership with Agista and is preparing to become a public company


Transport minister: Comarnic-Brasov motorway project will go on only with costs that match Romania’s budget

Nine O' Clock