Swisscom AG, has become the latest European carrier to announce plans to spin off its internet service provider arm. Last week, management at the Swiss incumbent said the flotation of its Blue Window ISP in the first half of next year remains a likely, if not inevitable, outcome of its ongoing privatization.
Blue Window, which has 300,000 users, could be worth CHF2bn to CHF3bn ($1.26bn-$1.89bn), according to analyst estimates based on previous public offerings from Freeserve Plc in the UK, Tiscalis SpA in Italy and Freenet AG in Germany. Swisscom, itself 65% state-owned, said it would keep an unspecified majority in the new company. The spin-off would allow the internet unit more flexibility when it comes to forming partnerships.
