Telekom: The big OBSTACLE in the sale to Orange and DIGI

Telekom still has a very big obstacle to overcome before it can sell its fixed and mobile services divisions to Orange and DIGI Romania.

Telekom the obstacle

Telekom has been waiting for a year for the approval of the Romanian Government to sell its fixed services division to those from Orange, and apparently the mobile services division to DIGI, according to the latest information about its plans. From what is known now, an agreement in principle would have been signed between Telekom and the representatives of the Romanian Government for the approval of the sale to be given in the fall of this year, but there is still a big obstacle to overcome.

Telekom this transaction will be investigated by both the Competition Council and the European Commission, and this is because it is a transfer of millions of customers between competitors from the same country, something that can affect the competitive environment. The President of the Competition Council said a few months ago that this sale must be analyzed very carefully because the competitive environment in Romania must not be affected by this process.

Telekom: The big OBSTACLE in the sale to Orange and DIGI

Telekom he wants to get rid of all the businesses he has in Romania as quickly as possible, and this for more than a year, but he has to wait for both the Competition Council and the European Commission. Both bodies must look very carefully at the terms in which this sale will be made, and decide whether the rules are respected or not, and otherwise it is possible that the sale will be canceled, although the chances of this happening they seem small.

Telekom it would strongly strengthen a competitor on the market, Orange, with the sale of the infrastructure of fixed services, but DIGI would also have a lot to gain from the transaction, and this raises a lot of discussions about its opportunity. Telekom is now one of the telecommunications operators that "pulls" the prices "down" with offers for very cheap services, which Orange does not have, and DIGI, although it has them, does not offer as good a quality as the competition.

Telekom he will most likely earn a serious amount of money from this advance, it not even being rumored until now, but it certainly depends on the number of customers he will have at the time of the sale.