AMSTERDAM, The Netherlands-According to international press reports, MmO2 is in talks with several operators, including Vodafone Group plc and T-Mobile International, for the sale of its Dutch subsidiary. The unit is reported to be worth around $210 million, although the price could increase with several interested buyers.
The Netherlands’ competitive mobile market includes five competitors. Besides O2 Netherlands, Vodafone, T-Mobile, KPN Mobile and Orange all operate subsidiaries in the country, which has a mobile penetration rate of more than 70 percent. All five of the current operators hold third-generation licenses, and eliminating one competitor would certainly boost profitability for the remaining players.
Equipment supplier L.M. Ericsson would likely not benefit from any sale, as O2 Netherlands signed a contract last year with Ericsson to outsource its entire Dutch network.
The news follows reports during the holidays that the Dutch government has fined the country’s five mobile operators on price-fixing allegations. Vodafone Libertel said it would appeal the fine.
