Vodafone takes over most of Telekom Romania Mobile Communications after competition body clears the deal

Vodafone Romania will take over most of Telekom Romania Mobile Communications (TKRM) after the Competition Council approved the transaction, while Digi Romania will acquire selected assets, the regulator announced on July 29.

TKRM is indirectly controlled by Deutsche Telekom.

Vodafone Romania will acquire TKRM’s core assets, including employees, postpaid and business customers, retail stores, and technical infrastructure.

Digi Romania, part of Digi Communications (BVB: DIGI), will take over rights to certain radio frequencies, a portion of the towers and equipment, and the entire prepaid mobile telephony service.

Digi Communications said in a filing with the Bucharest Stock Exchange that the deal remains conditional on the agreement of final terms and the approval of the National Authority for Management and Regulation in Communications (ANCOM) regarding specific aspects.

To address competition concerns, Vodafone and Digi agreed to continue investing in network development to improve mobile coverage and data quality, particularly along major public roads and in areas with weak signals. Both companies will also provide mobile virtual network operators (MVNOs) with access to their networks at competitive rates and maintain Orange Romania’s access to co-location services on mobile sites. Digi will keep TKRM’s prepaid contracts under the same conditions and continue offering prepaid services to all consumers.

The commitments will be monitored for up to four years by a trustee reporting to the Competition Council, which will coordinate oversight with ANCOM.

The regulator warned that failure to comply with the conditions could result in fines of up to 10% of the company’s turnover from the previous financial year.

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