Cosmote Romania Cleared To Taker Over Telemobil – Competition Watchdog

The watchdog said the takeover operation was based on information and data submitted by the country’s communications regulator ANCOM, the parties involved and their competitors. The regulator added it also considered potential competition issues brought forth by mobile telecommunications providers.

Watchdog head Bogdan Chiritoiu said the takeover operation would further strengthen competition on mobile telecom markets, mainly the market of mobile telephony services and internet access.

Chiritoiu stressed the watchdog would keep a close eye on the evolution of mobile telecom markets, adding it will help the country’s communications regulator reanalyze in 2012 the granting of 400 MHz broadband licenses.

According to data from the communications regulator, the 450 MHz broadband license owned by Telemobil expires in March 2012.

On June 30, Cosmote signed an agreement to take over Telemobil, which owns a 3G license and a 450 MHz broadband license, whereby Cosmote will pay EUR61 million for shares and EUR146 million to take over Telemobil’s debts and other financial obligations.

In 2008, Telemobil reported revenues of EUR61 million and its portfolio of clients exceeded 374,000 subscribers.

Cosmote Romania, part of Greek group OTE, is the third largest mobile telephony operator on the Romanian telecom market.

Cosmote Romania reported revenues of EUR203.1 million in the first six months of 2009, compared with EUR116.8 million in the same period of 2008, and operating income before depreciation and amortization (OIBDA) of EUR35.8 million, compared with a negative OIBIDA in the same period in 2008.

End-June, Cosmote Romania registered 6.33 million clients, compared with 4.64 million a year ago.

Cosmote Romania is 70% owned by Greece-based Cosmote and 30% by Romanian fixed-line operator Romtelecom.