Tele2 on Monday announced that it has brokered a deal to launch a mobile service in Austria using T-Mobile’s network.
Eight years after it pulled out of Austria’s fiercely-competitive consumer mobile space, the Sweden-based telco plans to re-open its mobile virtual network operator (MVNO) there.
This time it has highlighted the fact that the deal will enable it to provide nationwide coverage i n the business-to-business space.
"This enables us to better meet our current customers’ needs and become even more attractive on the market through more competitive offers," said Niklas Sonkin, EVP Central Europe and Eurasia at Tele2, in a statement.
Tele2 doubtless hopes the addition of mobile services will help it revive its flagging operations in Austria.
Tele2 recorded net sales of 1.21 billion kronor (€132 million) in Austria in 2014, down by 8% on the previous year. Its EBITDA fell by 28% to SEK 231 million.
It lost a net 6,000 customers in the fourth quarter of last year, and 29,000 over the full year, "caused by a market decline within the residential fixed telephony and broadband segments," it said in its 2014 annual report.
However, despite the fact the telco on Monday said the T-Mobile deal will add mobile capabilities to its existing broadband, fixed-line telephony and TV services portfolio, it is not clear at this stage whether it will head down the consumer quad-play route.
"Tele2 Austria will continue the launch of mobile B2B services based on an MVNO set-up," it said in its annual report. "Building on the high-speed broadband and TV products launched in 2014, the residential segment will continue the focus on retention and selective growth."
Tele2 shared its plan to return to Austria late last year. It pulled out of Austria in October 2007, selling its MVNO operations there to Telekom Austria for 65 million kronor (€7 million). It had around 131,000 customers at the time.
The company did not say when it plans to relaunch, but initially indicated an aim to come to market in the second half of 2015.
