Tele2 has announced that in addition to the sale of its Italian division to Vodaphone, it has also sold its Austrian MVNO operations to Telekom Austria for approximately SEK65 million (€7 million).
On June 31 Tele2 had 131,000 mobile customers in Austria bringing in revenues of SEK168 million in 2006, while in H1 this year its income in the country amounted to SEK 37 million. This resulted in a negative EBITDA of SEK28 million for 2006 and SEK30 million in H1 this year.
According to Lars-Johan Jarnheimer, president and CEO of Tele2 the alternative telco will concentrate on its broadband operations. “Our strength in Austria lies within our infrastructure based fixed and broadband operation. However, the current market environment leaves us little room for a profitable and sustainable MVNO operation”.