T-Mobile Acquires tele.ring

T-Mobile Austria to acquire Austrian mobile operator tele.ring Telekom Service for €1.3B

August 10, 2005

2 Min Read

VIENNA -- Deutsche Telekom AG announced today that its subsidiary T-Mobile Austria has entered into an agreement with Western Wireless International Austria Corporation, a subsidiary of Alltel Corporation, Little Rock USA, to acquire full control of the Austrian mobile communications operator tele.ring Telekom Service GmbH, Vienna. The transaction is subject to approval by the Austrian telecommunications regulator as well as the European Commission. The agreed purchase price is EUR 1.3 billion. As part of the transaction, T-Mobile will acquire net operating losses with a net present value of approximately EUR 150 million. T-Mobile estimates the net present value of synergies to be EUR 300 million.

René Obermann, CEO of T-Mobile, welcomed the agreement with Western Wireless: "With 3 million combined customers, the market position of T-Mobile Austria will be significantly enhanced. The customers of tele.ring will maintain their existing tariffs. At the same time, they will benefit from our outstanding network quality. Going forward they will be able to use our attractive mobile services as part of a mobile community with 3 million members, compared to 1 million previously."

tele.ring is the fourth-largest mobile operator in Austria, with approximately 968,000 mobile customers as at 30 June, 2005, corresponding to a share of the Austrian mobile market of around 13 percent. In the second quarter of 2005 alone, tele.ring added 51,000 new subscribers. The company’s proportion of contract customers of 77 percent is very high compared to the rest of the Austrian market, and its total customer base generates an average monthly revenue per user (blended ARPU) of EUR 39, higher than the Austrian market average of approximately EUR 35. During the first half of 2005, tele.ring generated revenues of EUR 277 million and EBITDA of approximately EUR 80 million. Total revenues in 2004 amounted to approximately EUR 539 million, with an EBITDA of EUR 122 million (compared to EUR 25 million in 2003).

T-Mobile Austria

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