Spain’s markets and competition authority CNMC has asked Orange to share its 4G network with MVNO MasMovil within ten days “as a preventive measure”.
The European Commission, meanwhile, is widely expected to approve Orange’s €3.4bn acquisition…
Spain’s markets and competition authority CNMC has asked Orange to share its 4G network with MVNO MasMovil within ten days “as a preventive measure”.
The European Commission, meanwhile, is widely expected to approve Orange’s €3.4bn acquisition of fixed-line operator Jazztel by its own 1 June deadline. A person familiar with the situation told TelecomFinance that the European regulator is likely to announce its decision next week.
Against the backdrop of both developments, MVNO Masmovil appears increasingly likely to play a pivotal role – as buyer or seller – in the country’s ongoing telecoms consolidation.
According to the CNMC’s statement, MasMovil asked Orange to access its 4G network in May 2013 and asked the regulator to intervene when this did not take place.
Last week, Reuters reported that the European Commission, is set to approve it with conditions. These are likely to include the sale of overlapping assets, including parts of Jazztel’s fibre optic network, and wholesale agreements with rivals.
A separate report in Spanish daily El Pais suggested that Orange has been given until 25 June to wholesale broadband capacity to a Spanish rival, who would be given wholesale access to Jazztel’s fixed line network covering 87% of Spanish ADSL users, as well as its fibre optic network, covering around 700,000 households.
Possible buyers
MasMovil has been tipped as a favoured candidate for these assets, due to its experience in both mobile and fixed services and its smaller size.
In the last year, listed MasMovil acquired local VoIP service UppTalk and its MVNO UppMobile, business-oriented operator Xtra Telecom, wholesale telecoms services provider Quantum Telecom and cloud-focused player Neo Operador de Telecomunicaciones. It has indicated that is keen to pursue further acquisitions.
Yoigo could eye MasMovil
Yoigo too would be keen to acquire Orange’s fixed-line assets, CEO Eduardo Taulet confirmed to Spain’s EFE news agency. Should its own bid fail, the company would be willing to negotiate with “those who have or will have [assets] to reach corporate or commercial agreements”, hinting at a potential deal with MasMovil.
In recent years Yoigo, which is majority-owned by Sweden’s TeliaSonera, has lost subscribers to Jazztel’s MVNO arm.
TeliaSonera called off its attempted sale of Yoigo in 2012, when bidders failed to meet its €1bn (US$1.4bn) price tag.
Last summer, TeliaSonera CEO Johann Dennelind described the budget mobile operator as a sub-scale business with a 7% market share.
“Consequently, we are reviewing our future presence in the Spanish market,” he said at the time.
Orange, Vodafone and Jazztel have long been rumoured as the most likely buyers for the asset.
