The Austrian branch of Deutsche Telekom, T-Mobile Austria, may cut investments or even withdraw from Austria if it is not allowed to compete on equal terms with competitors who will receive frequencies in the fourth generation LTE network, said CEO Andreas Bierwirth.
T-Mobile Austria is the second largest mobile service provider in Austria, after Telekom Austria. Two smaller rivals, France Telecom’s Orange and Hutchison’s H3G, want to merge, and regulatory bodies are currently reviewing the proposed transaction.
Bierwirth expressed concern in an interview published on Wednesday in the business daily WirtschaftsBlatt about a scenario in which H3G would receive LTE frequencies while regulators simultaneously approved the proposed merger.
In that case, H3G and A1, owned by Telekom Austria, would have a two-year advantage in accessing frequencies that allow Apple’s popular iPhone 5 to use the LTE network, he said.
– It would be a case of significant restriction of competition – he added. In that case, according to him, T-Mobile would be forced to reassess its market position.
– We would significantly cut our investment plans – said the head of T-Mobile Austria. When asked if this means T-Mobile could leave Austria, he replied: ‘In that case, I would not want to rule out any possibility.’
