Tele2: Going Nowhere Slowly

“Going forward, we have decided to evaluate our MVNO business to make sure that shareholder value is maximized.”

In other words, if the price is right Tele2 will sell all MVNO operations. Listen to the sound of another nail being hammered into the MVNO coffin…

The rest of the Tele2 results didn’t appeal too much with a slight loss in Q4 and net cash flow. It is hard to work out exactly what is going on in the various operations, but it looks as if Russia & The Baltics is the only region delivering any sort of growth. Even in those regions, ultimately Tele2 are sub-scale and risk being squeezed out by the major players. The Nordic countries look like roadkill, but that is nothing new. The Benelux figures are meaningless after the Tele2/Versatel deal. Central Europe, especially Germany, doesn’t really have a future. Southern Europe is the same as ever – a drain on cash.

The sooner this hotch-potch of assets is broken up the better.

By the way, does anybody know of anybody else who doesn't bother to webcast their conference call?