TDC calls for Nordic mergers

2 Dec 2013

TDC, Denmark’s leading mobile operator in terms of subscribers, has joined its rivals in calling for regional telecoms businesses to merge, suggesting that decreasing prices in the highly saturated Nordic markets are hindering telcos’ efforts to invest. Speaking to Bloomberg, TDC CEO Carsten Dilling commented: ‘The Nordic market is mature and ready for consolidation, and we are open-minded on the TDC side to assess relevant opportunities.’ Further, the executive stated that the company has concentrated on increasing its profit margin since 2012 by raising prices and bundling services, as part of its growth strategy. Dilling specified: ‘We decided not to participate in the price war, by having a bit more ‘ice in the stomach’ and adding more value-added services.’ However, TDC will most likely refrain from any large purchases in the country, as regulators would not allow any acquisitions in light of its dominant position in the domestic market.

TDC’s announcement comes after rival Telenor’s CEO Jon Frederik Baksaas made a similar statement in late October 2013, pointing out that the Swedish and Danish markets would benefit from mergers within the telecoms sector.



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