Press Releases

Budapest, November 29, 2005 10:00

Magyar Telekom concluded an agreement on the acquisition of 100% ownership of Orbitel, Bulgaria's largest alternative wireline telecommunications and internet service provider. In the coming years Magyar Telekom intends to become the major alternative wireline service provider in several countries of the Southeast European region.

Magyar Telekom concluded an agreement on the acquisition of 100% stake in Orbitel for EUR 8 million. As part of the agreement, Magyar Telekom also accepted the management's development plan envisaging investments of around EUR 7 million in the coming years to enable Orbitel to capture better the opportunities in the Bulgarian telecommunications market.

Orbitel is Bulgaria's largest alternative wireline telecommunications and internet service provider, offering country-wide voice and data services based on the IP technology to the business segment. In 2004 the company generated EUR 9.3 million in revenues and EUR 1.1million in EBITDA with 133 employees.

Elek Straub, Magyar Telekom's Chairman-CEO said commenting the purchase of Orbitel: "In the coming years Magyar Telekom wants to become the major alternative wireline service provider in several countries of the Southeast European region. In Romania, Bulgaria and Ukraine we already have points of presence in place which provide a good basis for us to continuously strengthen our footprint in the telecommunications markets of these countries. The next step in the first quarter of 2006 will be entry also to the Romanian retail market. As a result of the interconnection agreement concluded between our portfolio company in Romania Combridge and the local incumbent operator Romtelecom we can enter both the residential and the business segments with attractive offers based on carrier selection (preselection, call- by-call). By the end of 2006, Magyar Telekom intends to be present in every segment of the Romanian telecommunications market."