The deal forms part of Telecom Italia Wireline's programme regarding development and expansion of the broadband offer in Europe. Such activities are expected to attract investments of approximately 500-600 million euros during the three-year period 2003-2005, including the purchase of HanseNet for approximately 250 million euros
Telecom Italia initialled an agreement with e.Biscom today for the acquisition of 100% of the German company, HanseNet Telekommunikation GmbH.
HanseNet is a broadband operator, equipped with its own infrastructure, operating in the Hamburg area. With approximately 80,000 clients, it represents the number two telecommunications operator in this area after Deutsche Telekom. The business offers broadband access and value-added services, transmitted along its own high-speed network based on the IP protocol. It develops customer access mainly by unbundling the local loop. Expected turnover for 2003 equals approximately 100 million euros. Moreover, HanseNet has recorded a positive EBITDA for the last three quarters.
Telecom Italia will pay e.Biscom approximately 250 million euros to acquire the company outright, covering shares and debts owed to shareholders. Execution of the transaction is conditional on assessment by the competent Authorities. HanseNet's operational management will refer to the Wireline Business Unit, run by Telecom Italia's managing director, Riccardo Ruggiero.
Such an acquisition forms part of Telecom Italia Wireline's plan, presented yesterday to Telecom Italia's board of directors, to expand its offer of broadband services in some selected European cities showing the highest development potential. Including other initiatives for other European countries that are either already operative or soon to be launched, the plan intends to open up new horizons in the broadband and value-added services market by exploiting TIW's capacities and assets in terms of marketing, commercial channel management, technological skills and customer service.
Investment in such activities over the 2003-2005 period is expected to amount to approximately 500-600 million euros, including the Hansenet acquisition. Such a figure falls within the Group's overall three-year investment plan (14-16 billion euros) that was communicated to the market on 14th February this year.
Telecom Italia is the first of the big operators in Europe to have initiated and successfully developed its own financial restructuring by creating spaces for new development potentials and new sources of revenue growth.