MTG sells Zitius stake to TeliaSonera
December 18, 2013
Modern Times Group (MTG), the international entertainment group, has sold its 80 per cent of Swedish communications operator Zitius to TeliaSonera for SEK 380 million (€45m) cash.
The Open Access network model is specific to the Swedish broadband market and provides an open environment where multiple service providers can sign agreements with a communications operator to market their services to the end consumer, typically in multi-dwelling residential apartment buildings in towns and cities.
Since acquiring Zitius in August 2012, MTG has invested in the expansion of the company’s operations, and Zitius has won a number of additional distribution contracts in 2013. This has expanded its number of connected households by 12 per cent and active households, subscribing to at least one service, by 34 per cent.
Jørgen Madsen Lindemann, President and CEO of MTG, commented: “The Open Access market in Sweden has evolved rapidly over the last 16 months. The increased competition between communications operators has resulted in large contracts changing hands, as well as significant improvements in the services available in the different networks. This proves that the Open Access network model is both sustainable and benefits consumers through freedom of choice. As a result, it is no longer necessary for MTG to own Zitius.”