A1 Telekom Austria Group

Macedonian Competition Authority approves Merger of Vip Operator with ONE

Vienna, 08 July 2015

Today the Telekom Austria Group announces that the Macedonian Commission for Protection of Competition has approved the merger of Telekom Austria Group's Macedonian subsidiary Vip Operator with Telekom Slovenije's subsidiary ONE. The approval is based on certain commitments, such as MVNO access offered by the merged entity to interested parties. The closing of the transaction is expected for Q4 2015.

The Notifying Parties are convinced that the proposed commitments provide a good basis for a successful market entry of new participants on the market that will be able to combine mobile and TV offers within creative and valuable convergent bundles. This ensures competition on price and product level on all affected markets. In addition, the Notifying Parties are convinced that the merged entity one.Vip will become a company with sufficient scale and capacity to better invest and compete on price, quality and innovation. This will deliver best possible experiences for customers and businesses. Accordingly, the Notifying Parties strongly believe that the merger will ultimately be beneficial for both competition and Macedonian customers and foster one.Vip as reliable partner for Macedonian economy and society.

On 22 October 2014, Telekom Austria Group announced that it has agreed with Telekom Slovenije Group to merge their subsidiaries Vip Operator and ONE, both operating in the Republic of Macedonia. Telekom Austria Group will hold 55% and have sole control over the newly created entity, whereas Telekom Slovenije Group will hold 45%. Furthermore, the agreement also includes call and put options for the exit of Telekom Slovenije Group from the joint venture within three years of the closing of the merger.

ONE is the third largest mobile network operator in the Republic of Macedonia with a mobile market share of 25.4% as of Q4 2014 (Telekom Austria Group estimate) and a total customer base of about 715,000 customers as of 31 December 2014. In 2014, ONE achieved revenues and EBITDA of approximately EUR 75.7 mn and EUR 10.6 mn respectively.


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Livia Dandrea-Böhm

A1 Telekom Austria Group

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