Last week, reports emerged Deutsche Telekom had been given the green-light to sell its fixed network stake to Orange in Romania, and the French telco isn’t quashing the rumour.

Jamie Davies

September 4, 2019

1 Min Read
Money

Last week, reports emerged Deutsche Telekom had been given the green-light to sell its fixed network stake to Orange in Romania, and the French telco isn’t quashing the rumour.

With a 54% stake in Telekom Romania Communications, DT has a healthy position in the market, though it appears the country is no-longer part of the grand plan. Orange is reportedly in-line to purchase the fixed network stake, the remaining 46% is owned by the Romanian Government, and as you can see from the statement below, it is not denying the rumours.

“The Orange Group’s strategic ambition is to be a leading convergent fixed and mobile operator in Europe, and we are exploring all potential opportunities in Romania to further implement this strategy,” the company stated.

“Our analysis is still at a preliminary stage and no decision has been taken by Orange. In any case, such a decision would be subject to mandatory regulatory approvals.”

The reports in local press claim DT has received approval from the Romanian Government to sell its stake in one of the country’s biggest telcos. For Orange, this does look like it is a sensible move. It is the leading mobile provider in the country, though adding the fixed assets through such an acquisition would certainly make a more complete offering.

The convergence business model is one which is being firmly grasped across the Orange group. There are of course regional twists in terms of execution, though the over-arching strategy is fully-embracing convergence.

What is worth bearing mind is that there is enough nuanced language to add an element of doubt, but it does appear an announcement of some kind might be on the horizon in the not too distant future.

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