Direct One takes over Netcity project

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UTI Grup and UTI Netcity Investments SA sold Netcity Telecom, the operator of the underground fiber optic network in Bucharest, a press release informs on Thursday.

The transaction involves the acquisition of the integrated package of shares by Direct One S.A. Completion of the transaction follows the legal steps and is subject of the Competition Council’s approval.

“We believe that through this sale, Netcity project will continue to grow and we are proud that we were the promoters of such important project for the municipality, telecom operators and Bucharest inhabitants,” the release reads.

So far, the investment in Netcity network, exclusively provided by UTI Grup and UTI Netcity Investments, exceeded EUR 40 million. The network is over 900 kilometers and covers Bucharest’s central area, connecting 12,000 buildings. The royalty paid by the Municipality exceeded EUR 4 million until the transaction was made.

In 2015, the Competition Council (CC) carried out unannounced inspections at the headquarter of Netcity Telecom SA and at the working points of the company.

“The inspections took place within the investigation on an alleged abuse of a dominant position of Netcity Telecom S.A. manifested by applying discriminatory treatment on the market it operates (access services market to physical infrastructure associated to electronic communications networks for underground location of them, rental of underground sewer, rental of equipped/unequipped optic fibre and related services market),” CC explained.

Direct One is an independent and neutral provider of fiber optic infrastructure for telecommunications, owned by the Romanian entrepreneurs Teofil and Simion Muresan and operates a fiber optics network of over 5,500 km on domestic market.

 

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