The question was no longer if, but when Sunrise announces the Acquisition of UPC. On Wednesday evening it was so far, today, Tomorrow, Sunrise will give the result for the past financial year is known. In a conference call with financial analysts, CEO, Olaf Swantee, and chief financial officer André to inform Krause on the current Numbers.
On Wednesday, the number two in the Swiss Telecom market was confirmed “advanced discussions” with the UPC parent company Liberty Global. Also a price for the largest Swiss cable network operator Sunrise is called, even before it was confirmed in the evening: 6.3 billion Swiss francs. This is lower than industry experts expected. Until now, estimates are made 8 to 9 billion Swiss francs in the round.
The companies complement
announced As Sunrise, is to be committed to the new Swiss company a prudent capital structure, and the existing dividend policy will be maintained.
From a consumer point of view, arises with the Acquisition of a more vigorous competitor to market leader Swisscom as Sunrise and UPC Supplement: The cable operator brings its 1.1 million TV subscribers in the partnership and, therefore, access to domestic households.
in Addition, UPC also operates the Pay-sports channel Mysports with exclusive Live Broadcasts of Swiss ice hockey.
With a Swisscom, Sunrise and the Salt had only three large service providers are left instead of four.
Sunrise-with 2.3 million subscribers strong in the mobile. “With a merger, the new Sunrise has around 30 percent market share and is a strong number two in the Swiss market”, says Ralf Beyeler, Telecom expert at the comparison service money to the country.ch.
the Extent to which the new operator will bring the prices in a competitive market to Tumble, is controversial. Pure Economics says that the competition decreases when providers disappear. That would be on the UPC of the case, if the purchase succeeds. With Swisscom, Sunrise and Salt are only three large service providers would remain, instead of four.
This is a point that will also watch the competition authorities in more detail. The Federal competition Commission must approve the Acquisition of UPC by Sunrise.
Rising prices after Deals
observers such as Beyeler refer to the experiences from abroad. Mergers of Telecom companies in neighboring countries such as Austria have meant that the prices had gone up in the market often, instead of decreasing. One reason was sometimes that in the first line of those providers had been taken, which would have promoted with aggressive Offers to customers.
He expected, therefore, with conditions imposed by the competition authorities, Beyeler: “to ask About the obligation for the new Sunrise, the smaller competitors network capacity at regulated prices.”
financial analysts, in turn, the state will see near to Swisscom under pressure. According to the US investment Bank Goldman Sachs is expected to intensify the competition, especially in the case of the cheap offers in the mobile and fixed-network business. Swisscom is competing with Wingo young and cost-conscious customers, Sunrise with the brand Yallo. Goldman Sachs calculates that, in the case of Swisscom, a good 2 percent of the profits could collapse.
But also because of the combative pricing policies of mobile operators, the Salt in the fixed network business, the Bank is the largest Swiss Telecom provider in the wind. Salt offers the fastest fiber-optic facilities in the country.
competition
Swisscom CEO Urs Schaeppi said earlier this month that a merger between Sunrise and UPC would lead “to more competition.” Swisscom was well positioned and wide, “so I positively look forward to”.
Sunrise had already confirmed in early February that the company takeover has been in talks with UPC. Rumors of a rapprochement between the UPC parent Liberty Global and Sunrise remained for years a persistent. Now, Olaf Swantee says: “Together with UPC in Switzerland, we will create a stronger and real convergent Challenger, as well as a substantial value for our shareholders.”
(editing Tamedia)
Created: 28.02.2019, 00:01 Uhr
