France Télécom and TDC merge Swiss operations

France Télécom has struck a deal with Danish telco TDC to merge their respective Swiss subsidiaries Orange Switzerland and Sunrise Communications to create a combined fixed-and-mobile broadband and telephony provider in the Swiss market.

France Télécom will pay €1.5bn to TDC to become a 75% shareholder in the combined entity, with TDC holding the remaining 25% stake. The company will have approximately 3.4 million mobile and 1.1 million fixed and broadband customers, accounting for 38% of the mobile market and 13% of the fixed broadband market, with sales of CHF3.1bn (€2bn) and EBITDA of CHF809m in 2008.