Monday, 16 February 2009

Mobistar and Telenet agree to prolong partnership – Belgium

The second largest Belgian MNO Mobistar and the largest Belgian cable broadband provider Telenet have announced that they are to extend their strategic partnership for a minimum of 3 years. According Mobistar, “the new partnership has evolved into a full MVNO agreement.”

The continuation of the agreement calls for Telenet to develop its own mobile switching centre and will work in cooperation with Mobistar for its voice and data radio infrastructure.

The original agreement between the two companies was signed in February 2006 at the annual GSM conference in Barcelona. The agreement allowed Mobistar to target specific market segments previously out of its reach and the agreement also enabled Telenet to offer its customers quad-play services. Both parties in the agreement believe that the three year extension to the current deal will be a positive move.

Duco Sickinghe, Chief Executive Officer of Telenet commented: “With this agreement we can make the mobile Internet market more dynamic. In July 2006, Telenet added mobile voice to its 'triple play' offer following a partnership with Mobistar. Today, this full MVNO is a major step toward the development of Telenet Mobile as a fourth pillar, in its own right, in addition to Internet, fixed telephony and television. It means that in the long term Telenet will be able to fully compete in every segment (quad-play). This agreement also means Telenet is able to make the step towards more advanced products and services made possible by the increasing convergence between fixed and mobile telephone and Internet applications.”

Benoit Scheen, Chief Executive Officer of Mobistar added: “This MVNO agreement strengthens our strategic position and confirms that our partnership approach works. We are glad that Telenet, our first MVNO partner, is now also our first Full MVNO partner. They are an innovative player in Flanders and an important partner for the future. Access to their fibre optic network can offer additional possibilities to manage our backhaul. The expected growth of mobile data traffic will require increasing fixed network capacity to base stations and Telenet will offer this extra handling capacity.”