Belgacom and Swisscom Fixnet
have signed an agreement to combine their international
carrier businesses into a joint venture.
This transaction will enable the newly created
company to reinforce its market position
and competitiveness in the international
carrier market while realising synergies.
Belgacom SA will own 72% and Swisscom Fixnet
AG 28% of shares in the new company, which
will have its headquarters in Belgium
Belgacom
SA and Swisscom Fixnet AG are to establish a
joint venture in which Belgacom will own a 72%
stake, while Swisscom Fixnet will contribute
its international carrier business in exchange
for a 28% stake. Headquarters will be located
in Brussels with an office in Switzerland.
The Belgacom offices in Dubai,
New York and Singapore will be maintained. While
employment opportunities in the
new company will be offered to Swisscom employees,
approximately 100 of the 124
jobs in Switzerland are to be phased out within
the next three years. The Swisscom
affected employees will benefit from Swisscom's
comprehensive social plan which
is already in place. Belgacom International Carrier
Services employment will not
be affected by the transaction.
A leading international voice
carrier
The international carrier business is affected
by strong competition, overcapacity and the
associated severe pressure on prices. This
transaction will create a strong new player
in the international carrier business. This
increase in scale will improve the joint venture's
competitive strength on the international market.
In the joint venture, Belgacom and Swisscom
Fixnet will capitalise on their existing strengths
in the international wholesale voice business
while reinforcing offerings that address the
voice and data needs of mobile operators. All
commitments and financial obligations towards
customers and suppliers will be assumed by
the joint venture.
The transaction is expected to be cash-flow positive for both shareholders
as from completion. The Boards of Directors of Belgacom and Swisscom have unanimously
approved this transaction, completion of which is subject to the approval of
the relevant competition authorities.
Commenting on the deal, Bridget P. Cosgrave, CEO of Belgacom International
Carrier Services, said: "Our customers will benefit from the reinforced size
and scale of the combined entity together with our proven quality of service.
In merging, we have fulfilled one of the strategic objectives of the Belgacom
Group. We have taken a first step towards the consolidation of the international
carrier segment, and are proud to be one of the leading international wholesale
carriers worldwide."
According to Christoph Brand, Head of Swisscom Fixnet Wholesale, responsible
for the national and international wireline networks and wholesale business, "The
Joint Venture strengthens the competitiveness of the Swisscom Group while at
the same time allowing Swisscom Fixnet to continue its focus on our core national
network and wholesale business. Due to the joint venture's enhanced purchasing
power, Swisscom Group companies will be able to obtain better prices for termination
in foreign countries while maintaining the high quality standard for which
Swisscom is universally renowned."
Brussels/Berne, February 23,
2005 -