Spanish MVNO Masmovil has signed a 4G network sharing agreement with Orange, which will allow it to offer high-speed mobile and multi-play broadband services.Masmovil had first asked Orange to share its network in May 2013 and filed a case with Spanish…
Spanish MVNO Masmovil has signed a 4G network sharing agreement with Orange, which will allow it to offer high-speed mobile and multi-play broadband services.
Masmovil had first asked Orange to share its network in May 2013 and filed a case with Spanish markets and competition authority CNMC when this did not take place.
Last month, the regulator ruled in favour of Masmovil and requested that Orange share its 4G network within ten days “as a preventive measure”.
In a statement yesterday, Masmovil said that it already has exclusive access to a 4G fixed-line network following its acquisition of cloud-focused player Neo Operador de Telecomunicaciones earlier this year.
The listed operator, which in the last year also acquired local VoIP service UppTalk and its MVNO UppMobile, business-oriented operator Xtra Telecom, and wholesale telecoms services provider Quantum Telecom, has indicated that is keen to pursue further acquisitions.
The company is the most likely buyer for Orange’s fixed-line assets, which the French telco needs to divest as part of the remedies for its acquisition of fixed-line player Jazztel.
Issues €27m bond to fund growth
As part of its growth strategy, the company has issued €27m(US$30m) worth of bonds due 30 June 2020and carrying a 5.5% annual coupon.
A total of 16 institutional investors subscribed to 270 corporate senior bonds worth €100,000 each, the company said in a market filing.
Intermoney, Andbank and Bankia advised on the offering.
Proceeds from the sale will be used to launch a convergent offer through access to the Neo and Orange networks, pursue “selective” acquisitions, co-invest in broadband deployment and possibly acquire Orange’s fixed network.
“Additionally, there is a possibility that Masmovil will potentially benefit from the remedies imposed by the European Commission to greenlight the Orange/Jazztel deal. The possible benefit will result in access to [Orange’s] fixed broadband infrastructure with particularly favourable conditions, which would facilitate [our] aggressive growth strategy through a convergent offer on Neo’s current network and the broadband infrastructure obtained from Orange/Jazztel,” Masmovil said.
Should that be the case, the company will fund the Orange deal with additional bank financing.
Founded in 2006 by Norwegian Christian Nyborg and Austrian Meinrad Spenger, Masmovil claims to have over 130,000 customers. It is listed on the alternative investment segment of the Madrid stock exchange.
