EU Approves Telia - Sonera Merger

The European Commission has conditionally appropved the merger between the Swedish and Finnish telcos, Telia and Sonera. The approval is conditional on Telia selling its mobile operations, dealership chain and wireless LAN business in Finland while also providing a national roaming contract to the buyer if needed. This could lead to a new market entrant into the Finnish market. Telia has committed to sell its comhem AB cable business and related network in Sweden.

The combined company has also to make available to telecommunications operators in Sweden and Finland its regulated wholesale fixed and mobile network products and international GSM roaming in Sweden and Finland on a non-discriminatory basis compared to the terms on which they are offered internally within the combined company. This obligation to provide services on a non-discriminatory basis is in force for a period of three years and will be subject to a fast-track dispute resolution procedure by arbitration.

The Swedish fixed (Skanova) and the Finnish mobile networks are already today operated separately. The Finnish fixed network is currently operated in a subsidiary (Sonera Carrier Network Ltd.).

Telia's President and CEO Anders Igel and Sonera's President and CEO Harri Koponen jointly said "We are of course delighted about getting such a fast approval of the merger between the two companies. This will give us the opportunity to efficiently continue the merger process. The commitments made are reasonable, and the clearance from the Commission is a significant step in the creation of a competitive and strong telecommunications company."'"

Posted to the site on 11th July 2002