Proximus has sold edpnet to telecom company Citymesh. This puts an end to an investigation by the Belgian competition authority into the previous acquisition of edpnet by Proximus.
Proximus does not disclose how much money is involved in the acquisition. The Belgian telecom company says it is satisfied with the decision of the Belgian competition authority to stop the ongoing investigation into the takeover. “This allows us to put an end to the uncertainty surrounding the future of edpnet,” it said.
Proximus acquired edpnet in March 2023 for an amount of 20.5 million euros. Edpnet, a Belgian provider, was then in financial trouble and reportedly had 12 million euros in debt. The provider had to file for protection against its creditors in November 2022.
The Belgian competition authority decided in June this year that there would be an investigation into the takeover and subsequently blocked the takeover. The regulator stated that there was abuse of Proximus’ dominant position and believed that the takeover of Edpnet by the Belgian telecom company could lead to a situation that could harm the general economic interest.
Edpnet is a virtual provider that offers fixed and mobile services on the Proximus network. The provider has approximately 46,000 fixed customers and 20,000 mobile customers. Citymesh is a Belgian provider that mainly focuses on business customers. The company wants to position itself in the future as a major provider in Belgium that can serve both the business and consumer markets. The provider purchased a license for part of the Belgian 5G spectrum last year, in collaboration with the Romanian company RCS&RDS. Citymesh does not yet have a Belgian network and wants to offer mobile services via the Proximus network from 2024.
Update12.40 pm: Additional information and explanation about Citymesh added to the article.