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O2 Should Sell at Cost to MVNO Post E-Plus Deal: United Internet 2014-03-27 13:25:05.13 GMT
By Jurjen van de Pol March 27 (Bloomberg) -- Telefonica’s German O2 unit should be required to offer all parts of its retail products at cost price to MVNO’s after acquiring KPN’s E-Plus, United Internet CEO Ralph Dommermuth says in interview in Frankfurt. * Proposed such a remedy to European Commission as it would help maintain sufficient competition in Germany after merger * NOTE Feb. 27: Telefonica Optimistic of Overcoming EU Objections on E-Plus Bid * Currently with 4 mobile networks, ~25% of market is handled by service providers, Dommermuth says. Also: * Merger will probably lead to higher prices just like in Austria * Mobile virtual network operators have important role in creating competition * Says he’s “no friend of this merger” but expects co. can “reasonably continue” after merger * Says “direction is more likely to be towards higher dividends as the shares have done well recently and we’ve bought back at a share price between 12 and 15 euros.” * CEO holds 42% of co. and “for the moment” doesn’t see “any major” reduction * NOTE today: United Internet’s Results, Outlook Strong, Equinet Says * European Telco Consolidation Needed to Boost Returns: Exane * NOTE yday: United Internet 2013 Ebitda rises 25% to EU407m
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To contact the reporter on this story: Jurjen van de Pol in Frankfurt at +49-69-9204-1104 or jvandepol@bloomberg.net To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net