Telekom is close to completing the sale of the fixed services division to Orange, a transaction expected by millions of customers from all over the country, and now it seems that both companies have entered the "last hundred meters" with the preparations. The sale of Telekom's fixed services division to Telekom was established in 2020 when the companies concluded an agreement in this regard, it being approved by the European Commission on the condition that OTE, part of Deutsche Telekom, buys 30% of the shares of the mobile division of Telecom.
Telekom is composed of two divisions, one fixed and one mobile, and the fixed one held 30% of the shares of the mobile one, the European Commission forcing Deutsche Telekom to sell them so that Orange does not become a shareholder in the mobile services division. This happened last week when OTE, a telecommunications operator from Greece that is owned by Deutsche Telekom, took over the 30% stake that the fixed division of Telekom owns in the division of mobile services in Romania.
Telekom: Decision for the Sale of the Fixed Division to Orange
Telekom is now going to finalize the sale of the fixed services division to those from Orange, and all the operations and millions of customers in Romania will end up in a new company probably in the coming weeks. This new company was created by Orange to take over the fixed services division of Telekom, and the Romanian state is a shareholder in it because it owned part of the shares of the fixed services division, so it could not be left aside.
Telekom will transfer somewhere over 4 million customers from the fixed services division to those from Orange, and here we are talking about over half of its total customer base for both divisions. These customers will be gradually integrated into Orange, but for the moment nothing should change regarding the services they still benefit from from Telekom, although their quality should improve over time, but it is not excluded that prices also increase.
Telekom will remain in Romania with the mobile services division, now fully owned by the Greek group OTE, but maybe it will find a buyer for it, in 2019 and 2020 actively looking for one.
