Deutsche Telekom preps for Serbian telecom bid

Seven companies, among them Deutsche Telekom and France Telecom, have purchased tender documentation for the upcoming sale of a majority stake of state-controlled Telekom Serbia, officials said Friday.

Deutsche Telekom preps for Serbian telecom bid
Photo: DPA

“Deutsche Telekom, France Telecom, Telekom Austria, (Mexican) America Movil, (Russian) Weather investments, Turkcell and (Russian) Vimpelcom applied to take part in the sale of 51 percent of Telekom Srbija,” the finance ministry said in a statement.

Binding bids are due by February 21, the ministry said.

If multiple bids are received, a televised auction will be held by the end of February, it added.

The buyer offering the highest bid will win, and in case only one bid is received, Telekom would be sold for the offered price.

The government of Serbia owns 80 percent of Telekom Srbija, while the remaining 20 percent is owned by Greece’s OTE.

The Serbian government decided in October to sell Telekom, setting an estimated market value at €2.43 billion ($3.22 billion).

According to Economy Minister Mladjan Dinkic, the Serbian government expects to get at least €1.4 billion for Telekom. The government has said the proceeds would be used for reconstruction of the country’s infrastructure.

Telekom enjoyed a monopoly in the country until January, when Norwegian telecommunication company Telenor won a licence to develop the Balkan country’s second fixed telephone line network.

Telekom also owns the biggest mobile phone operator MTS in the country of some 7.5 million people.

According to its website, Telekom Srbija earned 13.3 billion dinars (€12.5 million) profit in 2009. It has 3.2 million clients in fixed telephony and 5.9 million clients in mobile telephony, which represents 60 percent of the market.

The Serbian company also owns telecommunication operators in Montenegro and Bosnia with an additional 1.8 million clients in mobile and 200,000 users in fixed telephony. It has more than 600,000 internet subscribers.

The group Telekom Srbija employs more than 14,100 people, including 9,655 in Serbia.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


‘We’re running late on this’: Deutsche Bahn promises better Wifi on German trains by 2026

German rail operator Deutsche Bahn has vowed to address what is widely considered to be one of the weakest areas of the country's telecommunications network: internet on trains.

'We're running late on this': Deutsche Bahn promises better Wifi on German trains by 2026
A Wifi hotspot sign is displayed on the side of a German train in Hamburg. Photo: picture alliance / dpa | Rainer Jensen

Deutsche Bahn chairman Dr. Richard Lutz made the promise in a press conference on Wednesday, where he announced a new partnership with German telecommunications operator Deutsche Telekom to improve the Wifi on trains by 2026.

“Trains are not just a means of transport to our customers – they are an office, conference room, and place to relax all at the same time,” he said. 

“To do all that, our passengers rightly demand that there be gap-free coverage with the mobile communications network. We are now laying the foundations needed to achieve this.”

He appeared together with the CEO of German telecommunications operator Deutsche Telekom, Tim Höttges, and the Minister for Transport, Andreas Scheuer (CSU), in the Bahn’s headquarters, high above Berlin’s central train station.

Deutsche Bahn’s rail network covers a total of 33,400 kilometers, 7,800 kilometers of which are major routes which are used by all ICE trains as well as main IC trains.

READ ALSO: Delayed train? Germany’s Deutsche Bahn to give online refunds for first time

Deutsche Telekom wants to supply these major routes with fast broadband by the end of 2024. 

By 2025, the company aims to supply another 13,800 kilometers of heavily-travelled routes – used by more than 2,000 passengers daily – with consistently fast Wifi.

The rest of the train operator’s routes should then be competed by 2026.

A “radical improvement”?

The patchy signal along Germany’s railway networks has long been considered one of the weakest areas of the country’s telecommunications network.

In 2015, the government insisted that the networks take action to improve the poor Wifi network on trains by 2019 – but the operators continue to drag their feet.

According to a report by the Federal Network Agency, there are around 550 fewer antennas near railway tracks than are needed to provide consistent service.

In his opening conference remarks, Höttges expressed his discomfort at returning to the age-old topic: “We’re running late on this, I’m fully aware of that,” he told journalists. 

Also attending the press conference, Minister for Transport Andreas Scheuer welcomed the new partnership.

READ ALSO: This new European high-speed rail network will take you from Vienna to Berlin in four hours

“The time of ‘I have no network’ must come to an end,” he said. “Mobile surfing and telephony must be possible everywhere and at all times.” 

Though the proposed changes are set to take another five years to be completed, Deutsche Bahn and Telekom described the plans as a “radical improvement” on the current situation.


Wifi access – WLAN-Zugang

Railway lines – (die) Bahnstrecken or (die) Bahnstrecke 

Connection – (der) Anschluss

Dead zone – (das) Funkloch

We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.