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Sunrise reaches out to the UPC – that would be the consequences for the customer

What about the rumours of a Takeover of UPC by Sunrise?
Sunrise has today responded Wednesday to recent speculation about a Takeover of the cable network operator UPC Switzerland. The number two in the Swiss Telecom market discussions with the UPC parent company Liberty Global, confirmed to a possible purchase. Sunrise has a clear vision for the business: It will only be a transaction, if they manage to strategically persuade, and demonstrable value for shareholders. In addition, there is no certainty that it comes to an agreement.

If the Takeover is concluded, what would happen with Sunrise and UPC?
Probably would have merged the two companies to a new Telecom operator. It is a shock would create a strong full-service provider with mobile, fixed-line telephony, Internet and digital TV offer. Because both companies would contribute their network and services: the Sunrise mobile network. And UPC holding the cable network with access to 2.9 million house, as well as the digital TV offer with exclusive content such as live broadcasts of Swiss ice hockey.

which would mean the purchase for consumers?
In the already saturated Swiss telecommunications market would intensify the competition. the Swisscom and the new provider would try each other's customers to recover. The user could expect attractive promotions and better Offers.

Swisscom would have a worthy competitor.

What would be a hot acquisition for the industry?
From the economic perspective, the two providers would disappear and a new, strong operator. Therefore, there would be less competition. How is that with a view on the market power of Swisscom is useful, a question that the competition authorities have to deal.

which would mean the Acquisition of market leader Swisscom?
The blue giant is the undisputed number one in the Swiss Telecom market. Swisscom benefits from their Size, and the low willingness to change of the local customers. Sunrise should buy the cable network provider UPC Switzerland, in fact, would give Swisscom a worthy competitor. The new provider would have more financial resources available to invest in the Expansion of its infrastructure.

What is a Salt ?
The number three in the mobile market for almost a year, a full-service provider. However, Salt does so far difficult to find the connection to Sunrise and UPC Switzerland. A new and powerful number two would increase the pressure on the small mobile operators is massive, to compete in the highly competitive market.

UPC customers use the Swisscom network.

What is the role of 5G?
Currently, the Confederation auctioned off the frequencies for the new mobile radio standard 5G. Sunrise, Salt, and Swisscom does not offer, however, UPC. I have Heard that the British Vodafone takes part in as the fourth supplier in the auction. 5G is regarded as a driver for future innovation in the Telecom business. It is therefore assumed that Sunrise is doing everything it can in order to get the coveted licenses. Thus, the company could bring an important dowry in a possible marriage with UPC in Switzerland.

UPC offers but since January 2019 mobile radio via the Swisscom network. What would happen in the case of a Takeover by Sunrise?
The new owner is expected to try the UPC customers on the Sunrise mobile network back.

What the shareholders of Sunrise of the takeover talks?
A spokeswoman for the Sunrise-large shareholder of Freenet told the news Agency Reuters, Freenet holding is a consolidation of the industry is right, would consider a possible Deal, and a consent was not excluded. Freenet controlled almost a quarter of the Sunrise stock. (Editorial Tamedia)

Created: 06.02.2019, 14:06 PM

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