The Austrian network, valued in the deal at €1.9 billion, currently passes 1.4 million homes and serves 654,000 customers who subscribed to 513,000 broadband, 450,000 voice and 468,000 video services. Subject to regulatory approval, the transaction is not expected to close until the second half of 2018.

Liberty Global said that proceeds from the sale will likely be used for general corporate purposes, which may include leverage reduction for the remaining UPC bank group, re-investment into our business, and support for the company’s share repurchase programme. “This transaction highlights the strategic and financial value of our fibre-rich networks in a rapidly converging world and the significant synergies inherent in fixed-mobile mergers,” explained chief executive officer Mike Fries. “We have operated in Austria for over 20 years and are extremely proud of the market-leading position we’ve built in both digital video and super-fast broadband. Looking forward, we believe the combination of UPC Austria and T-Mobile Austria will provide the national scale necessary to compete with larger companies like A1.”

Under the terms of the deal, Liberty Global has agreed to provide a number of ‘transitional services’ for a period of up to four years. These services principally comprise network and information technology-related functions. The annual charges will depend on the actual level of services required by T-Mobile Austria. Liberty Global will also allow T-Mobile Austria to use theUPC brand for a transitional period of up to three years as part of the transaction."