T-Mobile gets tele.ring

11 Aug 2005

As expected, Deutsche Telekom’s T-Mobile unit has agreed its purchase of its rival in the Austrian cellular market, tele.ring. The German company will pay EUR1.3 billion for tele.ring which is being sold off by Western Wireless following its takeover by US carrier Alltel. The purchase price is subject to downward adjustment if certain operating targets are not met. T-Mobile Austria had 2.05 million customers at the end of June, while tele.ring claimed 968,000. This gives the combined entity a customer base of just over three million and a 38% share of the Austrian market. The country’s largest wireless operator, Mobilkom, has around 3.3 million customers.

T-Mobile says it estimates that the tele.ring deal will bring synergies of around EUR300 million. The German firm has given assurances that there will be no job cuts in the near future, although it has confirmed that it has begun talks with tele.ring’s staff council. T-Mobile Austria will have a total of around 2,200 employees on completion of the deal.

Austria,T-Mobile Austria, tele.ring,


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