May 9, 2014 / 10:40 AM / in 4 years

UPDATE 1-Telekom Austria, America Movil expand wholesale net

* Deal expands Telekom Austria-KPN network

* Europe and Americas to be linked by Miami-Vienna fibre

* Partnership to increase efficiency, global market access (Adds details)

VIENNA, May 9 (Reuters) - Telekom Austria and its future owner America Movil have agreed to combine their networks in the Americas and Europe, expanding their offering for wholesale customers.

The deal announced by Telekom Austria on Friday, after America Movil secured Austria’s approval last month for a Telekom Austria takeover offer, will allow both companies to make more efficient use of their networks.

The partnership will link the networks of Telekom Austria and Dutch KPN, which were already combined after a similar deal between the two European carriers last year, to America Movil’s American infrastructure.

The American and European networks will be joined by a fibre link between Miami and Vienna, with a back-up between Dallas and Frankfurt, to create a larger network reaching 47 countries.

Both companies said the deal would help them provide higher-quality data services to their wholesale and large international business customers.

Telekom Austria said it would be one of the first providers to use America Movil’s new Latin American voice hub in Miami, which will in future process all the company’s voice traffic. (Reporting by Georgina Prodhan; Editing by Michael Shields)

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