TeliaSonera-owned mobile carrier Yoigo is no longer interested in acquiring Orange’s Spanish fixed network assets as they are mainly based on ADSL technology, the company said.
A Yoigo spokesperson was quoted saying that only 5% of the redundant…
TeliaSonera-owned mobile carrier Yoigo is no longer interested in acquiring Orange’s Spanish fixed network assets as they are mainly based on ADSL technology, the company said.
A Yoigo spokesperson was quoted saying that only 5% of the redundant connections resulting from Orange’s merger with fixed-line player Jazztel are fibre-based, while the remaining 95% use ADSL, which will soon become an “obsolete” technology.
The person added that the assets would not guarantee the company’s ability to offer convergent services in the long term.
A Teliasonera spokesperson confirmed the reports.
Struggling Yoigo has in recent years lost subscribers to Jazztel’s MVNO arm. Analysts believe that acquiring Orange’s fixed-line assets would have made perfect sense for the operator, enabling it to complement its mobile-only offering.
TeliaSonera called off its attempted sale of Yoigo in 2012, when bidders failed to meet its €1bn (US$1.4bn) price tag.
MVNO MasMovil, which was founded by Norwegian Christian Nyborg and Austrian Meinrad Spenger, has been tipped as the most likely buyer for Orange assets, due to its experience in both mobile and fixed services and its smaller size.
Last month, the company issued €27m (US$30m) worth of bonds, the proceeds of which will be used to acquire Orange’s fixed network, and pursue other growth opportunities.
In May Yoigo CEO Eduardo Taulet, said that, 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.
The European Commission approved the Orange/Jazztel deal on the condition that the French telco sold a fibre network representing 720,000 building units, largely composed of redundant connections between the Orange and Jazztel’s existing networks.
In addition, Orange must temporarily provide the eventual buyer with a wholesale subscription offer to Jazztel’s ADSL network. If necessary, the French telco will also provide a mobile wholesale offer if they do not already have a 2G, 3G and 4G access.