Romania: Deutsche Telekom acquired Zapp, through its subsidiaries OTE and Cosmote

[emportal] Cosmote Group signed last week an agreement for the acquisition of Telemobil, operator of Zapp Romania network, which holds a 3G license, the transaction supposing the payment of EUR 61 M for the shares and the takeover by the Greek company of some debts and other financial obligations worth EUR 146 M, reads a Cosmote press release.

The debts and the financial obligations that Cosmote, member of the Greek telecommunication group OTE, will assume come from the expansion of the 3G and CDMA telephony networks, the quoted document also shows. The agreement was signed in Bucharest by Cosmote general manager, Michael Tsamaz, and Nadim Akkawi, financial manager of the Saudi group Oger, owner of Telemobil.

Zapp was the first mobile telephony operator in Romania, the service being launched in 1993. On another hand, the officials of the Saudi group Oger say that the transaction came after a period of investments and major works in the infrastructure of the company.

The price is good, but the timing was bad, telecom analysts say

Telecom analyst Nicolae Oaca says that the discussions regarding the acquisition of Zapp have lasted for two years, that the price is good, but Cosmote was rather hasty.

“One of the reasons is the economic crisis which affects unavoidably also the telecom market. Another reason is that the National Authority for administration and regulation in communications (ANCOM) promised to offer 3G in the lower banks of 900 MHz – 1800 MHz, while at the level of the European Union a decision has even been taken in this respect, which awaits only the signing and the formal publication. Moreover, ANCOM promised also a new auction for 3G and, not least, we should add the new technology 4G, LTE, a technology which takes off everywhere in the world, in Japan, and recently also in Europe.

Romania could have organized an action for 4G in the band of 2.5 GHz next year, which would have allowed Cosmote to skip a stage, the technology offering bigger discharging speeds at smaller costs,” Nicolae Oaca said for HotNews.ro. He estimates that the acquisition will really enhance the competition on the 3G segment from Romania, especially towards the end of this year.

Cosmote Group purchased Zapp Romania