The telecommunications operator BTC successfully merged with its subsidiary BTC Mobile (Vivatel) in a transaction finalized on January 13.

As a result of this the company will have the biggest portfolio of services, products, and overall decisions on the Bulgarian communications market, the press release says.

The procedure started at the end of September 2008 following a decision of the BTC General Meeting of Shareholders. It aimed to improve the efficiency of management, optimize costs and ensure a stable growth.

The technical integration of the two companies allows for more precise market segmentation, detailed selection of vendors and launch of innovative products and services.

The merger is part of the BTC business strategy to introduce a single brand, the company said.

The BTC announcement drew negative comments from other players in the telecom sector. Mobile phone operator MTel said in a press release that the transaction would have a strong adverse effect on competition in the telecommunications market. "It provides more room for transfer of market power from BTC between connected markets (for mobile and for landline services).

Even after it has been found to abuse its dominant position on a number of occasions by the Commission for the Protection of Competition, BTC still controls an unprecedented market share of more than 95 per cent. The merger would additionally enhance its monopoly," said MTel. It expects the merger to facilitate cross-subsidizing between the two companies which goes counter the competition regulations.

BTC shares were last traded on the Bulgarian Stock Exchange on January 6 when 100 shares traded hands in three deals at 5.01 leva/share.