CPC approved the consolidation of Spectrum Net and Orbitel
13 January 2010The Commission for protection of Competition (CPC) has approved the acquisition of Orbitel EAD by Spectrum Net.
The two companies are the biggest alternatives telecoms in the country and provide data transfer and fixed-line telephone services to business customers and residential users.
The CPC approved the concentration with the argumentation that it will be to the benefit of the competition and will contribute to increasing the quality of the offered services on the market.
On 12th of November 2009 Magyar Telekom and Spectrum Net signed a contract for sale of Orbitel. The deal amounts to up to 5 mEUR and represents a significant step towards consolidation of the alternative telecommunication business in Bulgaria.
The expectations are the united structure to be the absolute leader among the alternative companies with a focus on providing converged voice and data services.
The synergy between the two companies is aimed to bring preservation of the revenue by reaching in 2010 around 40 mln. BGN and EBITDA amounting to 10 mln. BGN.