Austrians Go for Convergence

4:15 PM -- When Telekom Austria AG (NYSE: TKA; Vienna: TKA) CEO Hannes Ametsreiter talks about the importance of fixed and mobile convergence, he really means it. The operator has just gone the whole hog and merged its fixed and mobile operations in Austria. (See Telekom Austria Merges Fixed, Mobile and Telekom Austria Reports 2009.)

After the merger later this year of the two subsidiaries, Telekom Austria and Mobilkom Austria AG & Co. KG , the operator's new name will be A1 Telekom Austria. The operator expects the move to contribute positively to earnings by 2012 and increase cash flow by about €100 million (US$ 135 million) after two to three years. But for the 2010 financial year, a negative cash flow effect of €80 million ($108 million) is expected from the merger.

Check out what Ametsreiter told Light Reading TV at the Mobile World Congress last week about fixed and mobile convergence:

— Michelle Donegan, European Editor, Light Reading Mobile

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