EU gives green light to Telenet’s Base takeover

Since the deal brings together two of the market’s major players, some conditions were expected to be attached to the Commission’s approval. However, competition commissioner Margrethe Vestager was satisfied with Base’s sale of Mobile Vikings, an operator with no network of its own, to Medialaan, a company with TV and radio properties but virtually no presence on the mobile market.

Federal telecoms minister Alexander De Croo welcomed the decision and stressed the need for the market to be open to small virtual operators in order to maintain competition. The takeover, however, simply cements the existing triopoly: the three most important operators – by a long way – remain Proximus, Mobistar and Base. Medialaan enters the market at a much lower level; the company has been given an assurance on the use of the Base network for five years.

The main loser is Mobistar. The company warned last year that the takeover would result in Flanders being split in two between Proximus and Telenet, as Telenet’s TV and internet customers signed up for mobile as well, as clients of Proximus already largely do.

Mobistar, currently the country’s second-largest mobile operator after Proximus, has changed its name to Orange, taking the name of its French parent company.  The company hopes the new name – adopted against the wishes of a majority of shareholders – will strengthen ties with the parent and help revive the company. Customers will be informed if the change has any operational effect.

Photo: Telenet HQ in Mechelen

Courtesy Telenet