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Zon Multimedia overcoming financial challenge to implement mobile merger

Portuguese pay TV and cable operator Zon Multimedia has managed to overcome financial challenges in its ongoing merger with mobile operator Optimus and completion of the deal would give it access to new sources of finance, according to the company’s chief financial officer.

Zon Multimedia is in the midst of merging with a major mobile provider Optimus. Jose Pedro Pereira da Costa, chief financial officer of Zon Multimedia, speaking on a panel on finance at Cable Congress today, said that completion of the deal would give it vastly improved access to the international bond markets. Pereira da Costa also said that mergers between fixed and mobile operators made sense. “We think that the quad-play will make us more competitive, especially in the corporate sector,” he said.

He said that the deal will see Optimus fixed line and TV subscribers migrated to Zon, while Zon will also migrate its own MVNO base to the Optimus network, delivering considerable synergies.

While a merger between cable and mobile made sense for Zon, other cable operators are more cautious on this type of combination.

Andrea Salvato, senior vice-president and chief development officer, Liberty Global, speaking on the same panel, said each market faced its own challenges. He said that Liberty Global would look to roll out full MVNOs. However, it would take a market-by-market approach, he said.