Magyar Telekom plans future for T-Mobile
Wednesday, October 5, 2005, 08:08
The board of Magyar Telekom Rt is deciding on the future of T-Mobile Rt on Tuesday, daily Népszava reported. T-Mobile and its predecessor Westel Rt have been mobile telephone market leaders in Hungary since 2001. According to Magyar Telekom's plans T-Mobile will merge with the parent company, and will no longer be a separate statutory entity. The merger is just a technical transaction since MT has managed T-Mobile through its board of directors. Magyar Telekom's ultimate parent, Deutsche Telekom AG, who owns 57% of MT, also supports the merger. The companies expect to unite their market power with the transaction. The convergence of fixed line and mobile telephone companies has been a major tendency in Europe but due to market regulations companies found legislation friendly solutions, such as strategic alliances.