Magyar Telekom’s Macedonian Fixed-line, Mobile Units To Decide on Reorganisation/Merger by End-'09

In view of the trends on the European telecommunications market and the competitive domestic environment, the analysis is expected to identify the areas where both companies can improve their performance and strengthen market positions, MakTel said in the statement posted on its website following a joint meeting of the two companies’ boards.

Hungary's Magyar Telekom is the majority shareholder of MakTel and T-Mobile Macedonia. Magyar Telekom, in turn, is a unit of Germany's Deutsche Telekom.

T-Mobile Macedonia competes with Telekom Slovenije’s Macedonian unit Cosmofon AD, and Vip Operator DOOEL Skopje, the local wireless unit of Mobilkom Austria.

The competition on Macedonia's fixed-line voice market heated up in 2008 as Internet providers On.net and Neotel, cable TV operators CableTel DOOEL Skopje and Telekabel as well as Cosmofon all launched wireline services.

MakTel shares closed flat at 430 denars ($10.2/6.9 euro) on the Macedonian Stock Exchange on Thursday.

(1 euro=61.9293 Macedonian denars)