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