Telekom Austria sees E.Europe demand not weakening

VIENNA, April 8 | Wed Apr 8, 2009 3:46am EDT

VIENNA, April 8 (Reuters) - Telekom Austria (TELA.VI) does not see any weakening of mobile phone usage in emerging Europe despite the accelerating economic crisis in the region, its chief executive was quoted as saying on Wednesday. New Telekom Austria CEO Hannes Ametsreiter -- who took over predecessor Boris Nemsic' job last week -- said in an interview with weekly Falter that he remained convinced that the former Communist bloc was the group's most important growth market.

"We have indicators that show when private consumption collapses, for instance, how often prepaid phone cards are loaded, or how quickly invoices are paid," Ametsreiter said. "But so far, we don't notice anything."

Telekom Austria owns mobile operators in countries including Bulgaria and Belarus, as well as in the former Yugoslavia.

Ametsreiter also said he expected Hutchison Whampoa's (0013.HK) Austrian arm 3 Austria to exit the Austrian market eventually, but said it was unlikely that Telekom Austria would buy it for competition reasons. (Reporting by Boris Groendahl; Editing by Hans Peters)

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