TeliaSonera sees merging of Lattelecom and LMT as the best scenario

The work of Lattelecom and Latvijas Mobilais telefons telecommunications companies can be further improved based on the model of the current owners. At the same time, both owners should secure equal opportunities to affect decision-making processes in regards to the development of both companies, notes Economy Ministry.

Economy Minister Arvils Aseradens met with representatives of TeliaSonera AB on 10 March. The two parties discussed the vision for the development of Lattelecom and Latvijas Mobilais telefons and the possible cooperation between them.

The work group formed by the Cabinet of Ministers specifically to address the matter regarding strategic development and management of state shares in Lattelecom in LMT had previously emphasized the necessity of this meeting, as confirmed to the ministry.

During the meeting, TeliaSonera provided information regarding development strategies for the company in the Baltic region. TeliaSonera confirmed that it plans to continue working in Baltic telecommunications sector and currently views options for long-term development investments in Baltic telecommunications companies. The sides admitted that up until now cooperation between LMT and Lattecom had been successful. It was also mentioned that the telecommunications industry is in the process of rapid development. In order to secure competitiveness and successful work of companies in the future, shareholders should agree on a unified action strategy for the future.

TeliaSonera representatives admitted that the most effective development scenario for Lattelecom and LMT would be to merge and thereby secure effective use of resources of both companies. The merge of the two companies would also allow optimizing investment volumes for the preservation of their competitiveness, which would result in the improvement of the quality of services and their accessibility to clients.

Latvia’s side stated that the work group had read through TeliaSonera’s development proposal. It was emphasized that the current cooperation model of owners of Lattelecom and LMT has so far been successful. In addition, it is possible to reach an agreement in regards to options to improve this cooperation. Latvia’s party also noted that one major aspect is establishing economic control over any of the possible development scenarios.

It is planned that the work group formed for the management and strategic development matters of Lattelecom and LMT will meet soon in order to discuss recommendations for future cooperation between the two companies. Once all proposals have been discussed, the work group will submit them to the Cabinet of Ministers.

BNN 

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