TeliaSonera, the leading telecommunications group in the Nordic-Baltic region, has signed an agreement with France Telecom to acquire its Danish subsidiary, Orange A/S, with 605,000 mobile customers in Denmark. Combined with Telia Mobile Denmark, a new powerful alternative will be available for Danish telecommunications customers.
"By combining Telia Mobile Denmark and Orange Denmark, we are creating a true and powerful contender to the two dominating players in the Danish market. Combined we will have critical mass and operational scale, sufficient to become the first choice provider of mobile services in Denmark. This combination will benefit the Danish mobile customers," comments Anders Igel, President and CEO of TeliaSonera and continues, "In particular, the increased size will improve our ability to meet the demands of the business customer segments, but it will also enable us to continue improving our successful consumer service offer."
TeliaSonera currently operates mobile and fixed line communications as well as cable TV business in Denmark. With the acquisition, TeliaSonera is executing its strategy to increase its mobile customer base in Denmark. Anders Igel continues: "The transaction confirms TeliaSonera's long-term commitment to the Danish market and it strengthens our Nordic footprint in a way that will increase our overall competitiveness in pan-Nordic offerings."
The plan is to begin integrating the mobile operations of TeliaSonera in Denmark and Orange A/S as soon as the necessary approvals for the transaction are obtained. Until then, integration planning will be lead by a steering group, chaired by Kenneth Karlberg, President TeliaSonera Norway, Denmark and the Baltic countries, and comprising Jesper Brockner, Vice President, TeliaSonera Denmark, Richard Moat, CEO, Orange A/S, and Kjell-Ove Blom, Senior Business Advisor, TeliaSonera, as integration project leader.
Initially, no changes will be made in the existing customer relationships. The existing products and services of both organizations will continue to be delivered under separate existing brands until at least spring 2005. No significant organizational overlaps are expected pertaining to entities with direct customer contacts, such as customer services and the 22 Orange shops.
Integration planning will include decisions on branding, customer migration, new service portfolio, premises, personnel, handling of the overlapping GSM networks and UMTS licenses. Personnel overlaps are expected mainly within management, administration, network operations and product and services development. Confirmation of this is expected to be made in the beginning of 2005.
Employees in Telia Stofa and Telia Networks will not be affected directly by the integration.