Telekom Austria explores synergies with KPN

Telekom Austria explores synergies with KPN

Telekom Austria is reportedly set to start talks with Dutch carrier KPN with regards to possible synergies because they share a common majority shareholder in Carlos Slim’s América Móvil.

Austrian press agency APA cites Telekom Austria CEO, Hannes Ametsreiter, as saying during a meeting with journalists that the company will present a first assessment about strategy and synergy during a planned capital markets day on December 6.

Ametsreiter believes that synergies could come from procurement, wholesale and content activities, but would not comment on expansion plans.

Telekom Austria’s head of wholesale, Stefan Amon, told Capacity earlier this year that he was uncertain of possible synergies between the two companies.

“It is really hard to say. The markets are not that different in the Netherlands and Austria from a status point of view, but the price levels are different. However, they are going to fibre LTE at the same time.”

Amon also said that he hoped América Móvil’s stake would allow the company to do some smart investments to enlarge its footprint in the CEE region.

While Telekom Austria largely welcomed interest from América Móvil when it first emerged, KPN’s response was far more defensive and it sought to prevent the 27.7% stake acquisition through the sale of its German unit E-Plus.

This could mean that it would be against synergies facilitated by América Móvil according to analysts.