Balt­com: merge of LMT and Lat­t­ele­com is un­avoid­able in the fu­ture

Baltic News Network - - Front Page -

The merge of mo­bile com­mu­ni­ca­tions op­er­a­tor Latvi­jas Mo­bi­lais Tele­fons and telecom­mu­ni­ca­tions com­pany Lat­t­ele­com is un­avoid­able in the fu­ture, says Balt­com man­ager Ni­co­las Boissin.

He says the gov­ern­ment’s de­ci­sion to not merge the two com­pa­nies half a year ago is not the fi­nal de­ci­sion. «Sooner or later the merge will take place,» he said.

«This hap­pens in other Euro­pean coun­tries, and there is a point to it – this way it is pos­si­ble to re­duce costs and in­te­grate ser­vices for cus­tomers. With that, in­te­gra­tion of 5G fixed and mo­bile com­mu­ni­ca­tions be­comes all the more im­por­tant,» says Boissin. He adds that both com­pa­nies have strong po­si­tions on the mar­ket. ‘Putting them to­gether would make them even stronger’, he said.

Boissin says with the ex­ist­ing 4G net­work there isn’t much of a dif­fer­ence for cus­tomers is com­pa­nies are to­gether or apart – there is no need to in­te­grate fixed and mo­bile net­works. The sit­u­a­tion will be­come more com­pli­cated with in­tro­duc­tion of 5G. As pre­vi­ously re­ported, Latvia’s Prime Min­is­ter Māris Kučin­skis and Telia Com­pany pres­i­dent Jo­han Den­nelind have signed an agree­ment me­moran­dum re­gard­ing the fu­ture de­vel­op­ment of Lat­t­ele­com and LMT. Ac­cord­ing to the prime min­is­ter’s of­fice, the me­moran­dum demon­strates the in­ten­tion of both sides to sit down to­gether and de­velop a mu­tu­ally ben­e­fi­cial co­op­er­a­tion plan for de­vel­op­ment be­tween Lat­t­ele­com and LMT. The prime min­is­ter said the me­moran­dum is needed for both com­pa­nies to con­tinue de­vel­op­ing and co­op­er­at­ing with one an­other.

«Last Novem­ber the Cabi­net of Min­is­ters de­cided to not per­mit the merg­ing of Lat­t­ele­com and LMT. Now both own­ers – Lat­vian state and Telia Com­pany – have to work to­gether to de­velop these com­pa­nies. By de­vel­op­ing and sign­ing an un­der­stand­ing me­moran­dum, share­hold­ers of both com­pa­nies have clearly demon­strated their de­sire to work in Latvia and do all they can to en­sure their com­pa­nies de­velop suc­cess­fully, con­trib­ute to ICT de­vel­op­ment and bring an even larger fi­nan­cial ben­e­fit to the na­tional econ­omy,» said Kučin­skis.

Telia re­ports that the agree­ment of both share­hold­ers re­gard­ing long-term strat­egy, in­no­va­tive pri­or­i­ties and good man­age­ment prac­tice is im­por­tant for com­pa­nies to work more ef­fi­ciently with a clear goal in the volatile telecom­mu­ni­ca­tions and dig­i­tal sec­tor.

Re­al­iza­tion of the un­der­stand­ing me­moran­dum will take place in the next sev­eral months with par­tic­i­pa­tion of ex­perts from both sides.

Paula Čurk­ste/LETA

Newspapers in English

Newspapers from Latvia

© PressReader. All rights reserved.