telecommunications companies Orange Y MoreMobile announced last Saturday that they had reached an agreement to fuse its operations to fifty % in Spain. In this way, the Union of both companies will become the operator Leader in clients of the country, with 20 million of Mobile Network and around 1.5 million of TV. Also, as indicated in the release set that they issued to break the news, this operation will give rise to a group with a value of 18.6 billion of euros.
Today we announce that @Orange Y @masmovil have signed an agreement to unite their operations in Spain. Hello! https://t.co/JqPmrGQwUa via @orange_es
– Orange Spain (@orange_es) July 23, 2022
Although the negotiations started in Marchthe effects of this agreement for customers of both companies are still a unknown. However, the group has already sleepless What are your intentions regarding the installation of the 5G and the fiber to home. In addition, other movements in the market of ‘telco’what happens to have three large groups instead of four there was until now (Telefónica, Vodafone, Orange and MásMóvil).
Investments in 5G and FTTH
The merger between Orange and MásMóvil will allow “speed up investments in FTTH (fiber optic to the home) and 5G“. So they hold it both operators in the joint statement released last Saturday to announce this new alliance. “This agreement paves the way to start a business joint that unites the forces of Orange and MásMóvil in a single operator strongerwhich will allow investments in 5G Y Fiberbenefiting the customers from all over Spain”, explained Christel Heydemancurrent CEO of Orange.
Until now, Telephone was the only multinational with ability enough to carry out the deployment of the 5G network in a time reasonable. Now this new actor promise shake the market based on a strategy of economies of scale.
TV and soccer
Although the operator establishes that this agreement allows “secure the future of the competition in infrastructures in Spain”, the truth is that by going from four to three great actors it is not unreasonable to think that they can reduce the offers and commercial campaigns aimed at attracting New customers. Still, the TV of payment, above all linked to the exclusive issuance of footballwill be one of the great axes of telecommunications in the coming years.
For now, Telephone Y DAZN have an agreement until 2027 to broadcast the competitions of the Spanish league and the Champions. For its part, Orange pays the company headquartered in Madrid to have access to said content. So the threat of the services of ‘streaming’with names like amazon Prime Video on the table, and the possibility of a return to bid of large operators such as Vodafone could give rise to new combo packs or ‘all in one’.
