The EUROPEAN commission approved on Tuesday, the At the of purchase by the Swedish Government, where the TV4 channel is included, subject to certain terms and conditions. The commission announced in a press release.
Telia has offered undertakings, which the commission approved after in-depth review. The terms and conditions will be valid for a period of ten years, in Sweden and in Finland.
Telia must provide access, by means of licenses, on a non-discriminatory basis, to the combined company, free and basic pay tv channels and pay-per-view tv channels with the premiumsportinnehall.
Furthermore, Telia, to offer access to on-demand streaming services, and internet applications. The terms of service for video-on-demand (AVOD), and the services for the subscription video-on-demand (SVOD) is for the end user.
A third condition is that Telia must provide competing telecommunications companies and tv distributors, and non-discriminatory access to the television advertising space in the Telephone channels.
The fourth condition is that Telia need to protect the confidential information from rival television broadcasters, video distributors, and telecommunications providers.
“By the decision, the consumer, in both Finland and Sweden continue to benefit from a wide range of tv channels and audio-visual content, both traditional tv and the internet,” said EU competition commissioner Margrethe Vestager in a statement.
As the commission’s in-depth review on may 10, referred to the concern that the merged entity may be able to shut out competitors from the audio-visual sector in Finland and Sweden.
The commission stated in their terms and conditions when it comes to the free and pay-per-view.
The terms and conditions also apply to the additional rights, then the television manufacturer offers to the flow of the Telephone channel via the internet.
Telia also needs to issue the licenses to the hard disk player/nPVR rights to rival tv distributors.
A further requirement is that Telia need to license the “over-the-top (OTT)rights, and, therefore, the distribution of television services via the internet, pay-tv channels, with the premiumsportinnehall to the other two vendors.
Bonnier broadcasting’s ceo Casten Almqvist from the hives is going to be responsible for Telia’s new area of business for the media.
TV4, C More, and the MTV show is going to be included in Telia’s new area of business for the media. The business area also includes Teliasonera’s current media activities, according to the company.
The process of integration between the Swedish Government, with its approximately 1,200 employees in Sweden, norway, Finland, Denmark, and Telia, the Company will start when the transaction is completed, which is scheduled to take place on december 2, 2019.
Telia is committed to the acquisition of the Swedish Government, is expected to generate synergies in 2020, with the full power of a 600 million a year by 2022.
“This is an important step in Telia Company – we are pioneers in the Nordic region, where we are building a solution that meets the customer’s requirements for high-quality spot, stable streaming, and the amazing content,” says Teliasonera’s interim ceo, mr Christian Luiga, according to a news release.
Telia ab repeat, that the synergies will be seen in three areas: improved core business, increased the use of the C More, TV4-Play, and cost-effectiveness.
Integration costs are expected to amount to a total of eur 400 million in 2020-2021. The impact on operating cash in 2020, nettosynergier and integration costs are expected to amount to 500 million euro, writes the Museum.