Orange/Sunrise definitely drop merger in Switzerland
The merger between Orange and Sunrise has definitely fallen through. After receiving the Weko’s negative decision regarding the planned merger of Sunrise Communications and Orange Communication on April 22, 2010, the owners, TDC and France Télécom, reviewed possible options for the next steps.
The conclusion was reached to dissolve the joint merger agreement. The appeal filed on May 20, 2010 will also be withdrawn, according to a Sunrise press release. Following the definitive failure of the merger, Sunrise and Orange emphasize that they intend to continue their existing business in Switzerland on their own. The investments will be continued, according to both companies.
Consumer advocates are pleased and, like the regulator, are calling for a revision of the Telecommunications Act. The Foundation for Consumer Protection SKS expressed its satisfaction at the collapse of the merger. Apparently, the two telecom providers were not prepared to make concessions in favor of consumers, said SKS Managing Director Sara Stalder.
The Chairman of the Federal Communications Commission ComCom, Marc Furrer, would support Sunrise and Orange merging key network components as an alternative to a merger. Although he regretted the ComCo's decision, he also said that he could understand the authority's legal justifications. The revision of the Telecommunications Act was necessary in certain areas, the ComCom boss continued.
Consumer advocates are pleased and, like the regulator, are calling for a revision of the Telecommunications Act. The Foundation for Consumer Protection SKS expressed its satisfaction at the collapse of the merger. Apparently, the two telecom providers were not prepared to make concessions in favor of consumers, said SKS Managing Director Sara Stalder.
The Chairman of the Federal Communications Commission ComCom, Marc Furrer, would support Sunrise and Orange merging key network components as an alternative to a merger. Although he regretted the ComCo's decision, he also said that he could understand the authority's legal justifications. The revision of the Telecommunications Act was necessary in certain areas, the ComCom boss continued.
