Two become one: T-Mobile and UPC make the ultimate promise for Austria’s digital future

02. August 2018 /

The purchase of UPC Austria by T-Mobile Austria, which became effective on August 1st, 2018, will open a new chapter in the digitisation of Austria. “With the new joint company of T-Mobile and UPC we make the ultimate promise for Austria’s digital future: We will provide the best internet experience, entertainment and service. This will be our contribution to Austria’s national goal of joining Europe’s top countries in terms of digitisation,” Andreas Bierwirth, CEO of T-Mobile Austria and UPC Austria said at the launch conference.

By converging fixed and mobile connections, consumers and business customers can easily meet the requirements of their digital daily lives through a single reliable partner. The core of this offer consists of the combination of the fibre powered cable network of UPC in urban and suburban areas with the strong and comprehensive LTE network of T-Mobile. “UPC’s fibre powered network already provides the highest download and upload speeds in Austria. We will accelerate this network with upgrades to gigabit speed“, Bierwirth explained.

“I am glad that T-Mobile Austria received the authorisation for the acquisition of the cable network operator UPC Austria. From now on, we will be able to offer convergence products to our customers in Austria and to strengthen our market position”, Srini Gopalan, member of the Board of Management at Deutsche Telekom AG for Europe, said about the closing of the acquisition.

The key to digital entertainment
Through the purchase of UPC Austria digital entertainment becomes a key service of T-Mobile Austria’s offers. “Entertainment and all sort of digital content are essential for our development as an integrated provider”, Bierwirth explained. The wide offer of digital TV, video platforms and digital entertainment like eSports is provided by the Horizon platform, which has proven itself all over the world. This platform is licensed from Liberty Global, which will continue to develop Horizon. “We are providing our customers with the best starting point for their digital entertainment on all of their screens, TV, smartphones, tablets and other devices.” The TV offer will soon be provided for all customers of T-Mobile and UPC in Austria regardless of technology or device used.

Ensuring claim to leadership by further investments
Bierwirth stated an unequivocal commitment to continued investment in the networks of T-Mobile and UPC. The UPC network will be upgraded to gigabit speed with matching products introduced in 2019. By the end of 2021, the number of Austrian households with access to high-speed internet will grow from 1,4 million to 2 million households. Beyond the coverage reached by the fibre powered network innovative LTE-DSL hybrid connections and DSL provide a comprehensive broadband grid for all regions.

By upgrading the LTE network to the future gigabit communication standard 5G, T-Mobile is going to accelerate mobile communications. “Already in 2019 we will begin with the role out of our 5G network for customers”, Bierwirth explained. With 5G mobile networks will be able to match the performance of fibre powered networks and cover areas, in which laying cables to individual homes would be both costly and take a long time.

A new attractive provider of services
Both brands, T-Mobile and UPC, as they are known today, will disappear from the market over the next few months step by step. In 2019 attractive new integrated offers will be launched with a fresh appearance under the umbrella of the familiar magenta brand “T“. Tele.ring, T-Mobile’s second mobile brand, will remain present on the Austrian market as the first choice of smart users.

For now, there will be no changes for existing customers of T-Mobile Austria and UPC Austria. All contracts remain valid as they are. Customers will be supported either by T-Mobile or UPC respectively. Products will be sold over the next months in the shops or online channels of either T-Mobile or UPC. There will be no extraordinary right of cancellation because of the change of ownership of UPC Austria.

7.2 million subscriptions, 1.25 billion Euros revenue
In 2017, T-Mobile Austria and UPC Austria together had 7.2 million subscriptions to their services, consisting of mobile and fixed internet access, smartphones and telephony, TV and other entertainment offers. Altogether they achieved 1.25 billion Euros in 2017 on a pro forma basis. UPC Austria was valued at 1.9 billion Euros for the acquisition.

T-Mobile Austria is going to completely take over about 1.000 employees of UPC Austria during the acquisition. The new company will consist of 2.500 employees. Bierwirth: “T-Mobile and UPC are two companies that complement each other perfectly, like right and left hand. Not only in terms of networks and offers, but also in terms of the people who made these companies so strong. With this expertise and commitment of our employees we will accomplish our goal to be the engine of Austria’s digital future.”

Verfasst von
Helmut Spudich ist Unternehmenssprecher von T-Mobile Austria. Er ist für die gesamte Unternehmenskommunikation zuständig und wird von seinem Team tatkräftig unterstützt. Er wurde im Jahr 2016 zum vierten Mal in Folge zum besten Pressesprecher der Branche IT/Telekommunikation gewählt.

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