Bulgaria’s competition authority gave on October 2 the go-ahead for the merger of Eurocom Cable and CableTEL, the country's two biggest cable TV operators. The buyer, Netherlands-registered company FN Cable Cooperatif, which controls Eurocom Cable’s owner, FN Cable Holdings BV, also acquires connected company Vicom Bulgaria.

The deal created the biggest player in the paid TV, Internet and telephony segment, although Eurocom board chairperson Petyo Staikov said the new firm will hold no more than a quarter of the market. Staikov declined to announce financial details or total subscriber numbers.

“At this points I cannot say whether after the transaction there will be one company with one name and single management. The CPC’s decision should be implemented by a certain deadline but it does not actually perform the integration between the companies,” Staikov said, adding that tying up the businesses would be a complicated process and may take between six months and two years.

The Competition Protection Commission backed the merger although the new entiry will have a dominant market position, and reiterated that it was not the market monopoly, itself but the abuse of such a dominant position that goes against legislation.

The watchdog said the deal would give a boost to the Internet and fixed-line telephony markets.

However, the transaction caused quite a stir on all three markets it will affect. Small cable operators association TV Club 2000 told the regulator the new company will control over 80% of the paid TV market.

Bulgaria’s dominant landline operator BTC sounded the alarm that the deal will result in an over 35% market dominance and reshuffle the fixed-line telephony market.

Source: Dnevnik.bg