Polish utility Tauron, T-Mobile to launch joint product

WARSAW Thu Dec 19, 2013 10:09am EST

WARSAW Dec 19 (Reuters) - Deutsche Telekom's Polish T-Mobile business and power producer Tauron will launch a joint offering aimed at gaining customers with a package of discounted phone services and power rates, the companies said on Thursday.

The pilot project, in which Tauron's clients obtain competitive rates from T-Mobile and the telecom firm's customers are offered cut-price electricity, marks T-Mobile's first step into Poland's electricity market.

It also reflects a new trend coming to Poland's saturated power and telecom sectors, which are dominated by three or four big players.

Such moves are still in their infancy, however, as the government controls power prices for households. The process will accelerate once Poland frees the market completely, analysts say.

Poland liberalised prices for industrial users in 2007 but has refrained from doing so for retail customers.

Tauron, the second-biggest power producer in Poland, sells electricity to more than 5 million customers, mostly in the country's south. T-Mobile has about 16 million clients.

In February, Tauron's top local rival PGE signed an initial agreement on future cooperation with TPSA, Poland's largest telecoms operator.

Polkomtel, a telecom operator owned by Polish billionaire Zygmunt Solorz-Zak, is about to announce plans to sell electricity generated by utility ZE PAK.

Magyar Telecom, Deutsche Telekom's Hungarian unit, entered the local retail energy business in 2010. (Reporting by Agnieszka Barteczko; Editing by David Goodman and Dale Hudson)

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