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Magyar Telekom closed the sale of Orbitel

Magyar Telekom closed the sale of Orbitel

Budapest, February 2, 2010 11:30

Magyar Telekom closed the sale transaction of Orbitel, a Bulgarian alternative fixed line telecommunication and internet service provider company on January 28, 2010.

Magyar Telekom signed a contract with Spectrum Net AD in November 2009 on the sale of its fully owned subsidiary, Orbitel. The financial closing of the transaction took place upon obtaining the necessary approvals of the Bulgarian authorities.

After the purchase of Orbitel in 2006 the company, as a Magyar Telekom subsidiary, established a nationwide backbone network in Bulgaria that went operational in the spring of 2008. After the opening of the Bulgarian wholesale ADSL market the strategy was focused on selling ADSL services through the company's own backbone network. Magyar Telekom significantly improved the company's operational efficiency also with a successful management change and the implementation of advanced management know-how. In spite of hardships of the operational environment and major market restrictions the company achieved positive results from 2008. At the same time the strategic importance of the company has been reassessed due to changes in market outlook.

Magyar Telekom withdrew from the Bulgarian alternative retail telecommunication market with the sale of Orbitel. The company's backbone network was transferred to the ownership of Novatel Bulgaria, the remaining Bulgarian subsidiary, to pursue wholesale business activities.

About Magyar Telekom
Magyar Telekom is Hungary's biggest provider of telecom services. It provides a full range of telecommunications and infocommunications (ICT) services including fixed line and mobile telephony, data transmission and non-voice as well as IT and systems integration services. The business activities of Magyar Telekom are managed by two business units: Consumer services (the home-related services brand T-Home and the mobile communications brand T-Mobile) and Business services (T-Systems brand). Magyar Telekom is the majority owner of Makedonski Telekom, the leading fixed line and mobile operator in Macedonia and it holds a majority stake in Crnogorski Telekom, the leading telecommunications operator in Montenegro. Magyar Telekom's majority shareholder (59.21%) is MagyarCom Holding GmbH, fully owned by Deutsche Telekom AG.
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