T-Mobile to buy Tele2 to take on KPN and Vodafone in Netherlands

T-Mobile NetherlandsDeutsche Telekom owned T-Mobile NL will acquire Tele2 NL to become a strong number three telecom operator in Netherlands behind rivals KPN and VodafoneZiggo.

The enlarged T-Mobile NL will have pro-forma revenues in excess of EUR 2.0 billion and around 4.3 million mobile postpaid subscribers and expects to generate annual run-rate synergies of some EUR 150 million p.a. within three years from closing.

Tele2 will receive 25 percent stake and a cash payment of EUR 190 million. Deutsche Telekom will own 75 percent of the shares in the enlarged company and a EUR 1.1 billion intercompany loan receivable.

T-Mobile NL will spin out its mobile tower and rooftop assets into a separate legal entity which will remain in the full ownership of Deutsche Telekom.

The company will operate as T-Mobile Netherlands and will use the Tele2 brand in the Netherlands telecom market.

The combination of T-Mobile NL and Tele2 in Netherlands will create a company that can compete with rivals such as KPN and VodafoneZiggo due to scale, spectrum resources and significant synergy potential.

“We will be able to compete against the duopoly much more efficiently and give all Dutch customers a fair choice. We are never going to stop breaking down barriers and will continue to challenge this industry in the years to come,” said Seoren Abildgaard, CEO of T-Mobile.

T-Mobile NL will benefit from Tele2 NL’s 800 MHz and 2,600 MHz spectrum licenses, boosting network capacity for mobile data while maintaining quality in terms of speed and low latency.

T-Mobile NL will have access to Tele2 NL’s B2B fixed-line infrastructure and improved scale in B2C broadband.

It will add strength in distribution through the shop network of T-Mobile and online distribution strength of Tele2 NL.

“We’ve started our journey to disrupt the Dutch market and we will be creating a viable and strong attacker of the duopoly KPN and VodafoneZiggo,” said Thorsten Langheim, head of the Group Development segment of Deutsche Telekom overseeing T-Mobile NL.

Allison Kirkby, president and CEO of Tele2 AB, said this is an opportunity to speed up development of the Dutch telco market.


VodafoneZiggo has earlier tapped Ericsson to increase the capacity of the Vodafone mobile network in the Netherlands, using 5G-ready Ericsson Radio System equipment.

VodafoneZiggo aims to enhance mobile Internet speeds, while offering NarrowBand IoT and CAT-M1 technologies for IoT applications to enterprises.

Vodafone owns 50 percent equity stake in VodafoneZiggo that was formed on 31 December 2016. VodafoneZiggo reported 4.3 percent drop in revenue against 3.4 percent dip in Q1 and 5.2 percent decline in Q2.

The drop in revenue was due to price competition in mobile, particularly in the SoHo segment, partially offset by a return to growth in fixed in Q2 driven by improved RGU additions and ARPU.

VodafoneZiggo’s mobile service revenue declined 11.7 percent against –9.3 percent in Q1 and –14 percent in Q2.

VodafoneZiggo has posted 2.4 percent drop in adjusted EBITDA in H1, as lower revenues were partly offset by lower equipment expenses, as a result of new consumer credit regulations which increased the proportion of SIM-only sales.