Service delivered as MTG zooms for ZitiusEditor | 30-07-2012
Modern Times Group (MTG), owner of the Viasat Broadcasting satellite TV company, has signed an agreement to acquire 80% of the Zitius Service Delivery network management and service packaging division of Quadracom AB.
No figure has yet been released as to how much the deal is worth, but what is known is that the agreement also provides for the acquisition of the remaining 20% of Zitius in 2016.
Zitius is Sweden’s leading independent Open Access Communications Operator, with approximately 150,000 connected fibre households.
The Open Access network structure is specific to the Swedish broadband market and provides an open environment where multiple service providers can sign agreements with the network operator to market their services to the end consumer, typically in multi-dwelling residential apartment buildings in towns and cities.
Of these, over a third currently subscribe to a service via Zitiusnetwork. Zitius has a number of contracts in place with a broad range of third party providers of telephony, data and TV services, who market their services to homes within the networks that Zitius operates. Viasat is already one of these providers.
Commenting on the deal, Hans-Holger Albrecht, President and CEO of MTG said: “The acquisition of Sweden’s number one operator of Open Access broadband networks reflects our commitment to invest in and support the roll-out of high speed platforms that broaden the availability and increase the consumption of our content. Video is the primary driver of internet traffic and that demand is only growing.
"Zitius is a high growth market leader in a fast growing segment that also delivers attractive profitability levels. Our intention is to strengthen Zitius’ market leading position even further, and to continue providing attractive offerings to customers from multiple suppliers in an open environment. We will continue to market our own Viasat channels and Viaplay service to consumers through as many platforms as possible.”
Added Roy Forslund, CEO of Quadracom: “Becoming a part of MTG, Sweden’s leading premium content provider, will significantly strengthen the Company’s position and give it the power to fulfil the vision to offer the broadest, locally tailored and most exciting services for the benefit of our existing and future network owner customers and all those who are connected to open access broadband networks managed by Zitius.”