EU – Baltic States, Latvia, Technology, Telecomunications

Juris Binde

Telecommunications affect all residents. Therefore Binde calls for making all viewpoints about the Lattelecom privatization offer available to the public for the assessment of telecommunications associations and experts, reported LETA.

Binde emphasizes that the value of LMT on the telecommunications market remains very high and will continue to increase in the future, because LMT is "the driving force behind the development of future technologies, a modern and progressive company that constantly develops and introduces new technologies and services needed by Latvian residents and the business environment

As reported, LMT and Lattelecom could be merged next year, magazine "Ir" reported last week, referring to a secret report submitted to the government.

The government will review the report in the near future.

LMT and Lattelecom privatization is currently not being discussed, but potential management models are being evaluated to ensure increases in both companies' value, save up assets, reduce administrative costs and improve client service, the Economy Ministry informed the business information portal "Nozare.lv".

Initial expert conclusions indicate that LMT and Lattelecom long-term development and value increases are hindered by restrictions set in their founding agreements, which do not allow the companies to come up development strategies matching the latest trends of electronic communications and telecommunications technology. This poses a threat for a decrease in LMT and Lattelecom value in the long term, points out the Economy Ministry

According to the report, LMT value has been constantly reducing since 2008 and could amount to LVL 149 million in 2013. Lattelecom value, however, has been stable and could reach LVL 238 million this year.

The Economy Ministry points out that the Privatization Agency has evaluated various LMT and Lattelecom management models, including consolidation with the state maintaining its controlling interest.