Magyar Telekom buys optical network

Telco

Magyar Telekom on Friday said it exercised its call option on a business holding in Cecoin Kft, which allows it to acquire an optical fiber network covering 110,000 access points for HUF 6.95 billion, according to a report by state news wire MTI.

Magyar Telekom said it signed an agreement in 2014 on the construction of an optical fiber network and in 2015 to lease it for 12 years from Cecoin Kft. The company currently serves 38,000 customers through this network. With the transaction, Telekom can boost its efficiency by reducing its lease fee payments.

The closing of the transaction is subject to notification to and acknowledgment by the relevant authority, Magyar Telekom said.

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