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EU OKs Telia/Sonera Merger 581914

Based on a number of commitments agreed by the Swedish and Finnish telecom giants, the European Commission approves their merger

July 10, 2002

1 Min Read

HELSINKI -- The European Commission today announces the approval of the merger betweenSwedish and Finnish telecommunications companies Telia and Sonera. The approvalis based on the following commitments agreed by Telia and Sonera:- Telia has committed to sell the mobile operations, dealership chain andwireless LAN business in Finland. In addition, the combined company has agreedto provide to the purchaser of its mobile operations in Finland national roamingon commercial terms and at a fair price if the purchaser does not already have anationwide GSM network in Finland.- Telia has committed to sell its comhem AB cable business and related networkin Sweden.- The combined company has committed to ensure that its fixed and mobile networkbusinesses in Sweden and Finland are held in separate legal entities, which aredistinct from related retail activities. The network companies' boards ofdirectors will include an external director appointed according to corporatelaw. This commitment can be revised after five years.- The combined company has committed to make available to telecommunicationsoperators in Sweden and Finland its regulated wholesale fixed and mobile networkproducts and international GSM roaming in Sweden and Finland on anon-discriminatory basis compared to the terms on which they are offeredinternally within the combined company. Pertaining to the roaming product,Telia-Sonera will have the right to require reciprocity in respect of prices,quality and other conditions. This obligation to provide services on anon-discriminatory basis is in force for a period of three years and will besubject to a fast-track dispute resolution procedure by arbitration.The Swedish fixed (Skanova) and the Finnish mobile networks are already todayoperated separately. The Finnish fixed network is currently operated in asubsidiary (Sonera Carrier Network Ltd.).Telia ABSonera Corp.

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