Tuesday, October 04, 2005
Strange, but uncontested ruling on MicroLink purchase
The Latvian Competition Council's (CC) fears of market domination by Lattelekom if it were to keep intended acquisition object MicroLink's data transmission network seem based on the IT company's ownership of a citywide network in Riga called Metro. Most of the rest of the company's data network seems to be leased lines from other operators such as Latvenergo or even Lattelekom itself. It is just in Riga that we see a lot of competition, with parallel optical and other cabling by Telia MultiCom (a cable TV and internet company that no longer has any ties to TeliaSonera), Baltcom TV and other, local companies. This makes it hard to understand what the problem perceived by the CC was. In any case, Lattelekom isn't contesting the issue and there are potential buyers for the MicroLink network, including Telia MultiCom. The reason – anyone would want some of the mid-sized businesses that have become customers of MicroLink. The potential buyers are out after the customers, not the fiber (which there is plenty of). Thanks for the business opportunity, CC.