O2 and HanseNet to become an integrated telecommunications company

-Setting the course for future growth
-Job cuts across both companies
MUNICH. O2 and HanseNet are to become one company. This will give rise to the third-largest telecommunications provider in Germany in terms of revenue. The company will continue to operate under the name of Telefónica O2 Germany with its head office in Munich. To ensure sustained growth, all departments will be reorganised. The company will cut around 1,100 jobs.
"With O2 and HanseNet we are merging two strong companies into one and thus creating a future-oriented organisation that can act quickly in the market", says René Schuster, CEO Telefónica O2 Germany. "As the new Telefónica O2 Germany, we will make the lives of our customers easier with new bundled products and further expand our shared strengths in service and sales." Due to the agreement with Telecom Italia the Alice brand will still be used for more than two years before becoming O2. Hamburg will be preserved as a site. O2 will manage the technology from Munich and Hamburg in future. The Verl branch as well as offices in Dortmund, Frankfurt, Hanover, Leipzig and Stuttgart will be closed. The integration should be completed by 31 March 2011. The job cuts will be spread over both companies and the planned measures will be carried out in consultation with the Economic Affairs Committee and the relevant works councils. The reduction of the workforce to around 5,000 will be done in line with the social contract without enforced redundancies. The merger with HanseNet will make Telefónica O2 Germany a strong number three in the German telecommunications market. In the first half of 2010 the company reported a consolidated revenue with HanseNet of € 2.3 billion and has almost 19 million mobile and fixed-network customers. O2 operates one of the most high-tech mobile networks in Europe as well as a fully IP-based fixed network. Already at the beginning of August the company announced as part of the integration that it would consolidate its customer service at four sites in future. It is the plan for the remaining three sites to be run by a strategic partner.
Telefónica O2 Germany GmbH & Co. OHG belongs to Telefónica Europe and is part of the Spanish telecommunication group Telefónica S.A. The Company offers its German private and business customers postpaid and prepaid mobile telecom products as well as innovative mobile data services based on the GPRS and UMTS technologies. In addition, the integrated communications provider also offers DSL fixed network telephony and high-speed internet. Telefónica Europe has about 55 million mobile and fixed network customers in Great Britain, Ireland, the Czech Republic, Slovakia and Germany.