Angel Vilá, CEO of Telefónica, recalled yesterday the proposal made to Vodafone for its clients to use the blue operator’s fiber network. A movement that was paused as a result of Vodafone’s decision to sell its subsidiary in Spain to the British company Zegona, but that maintains its interest when the red operator completes its transition. In addition to stating that they are renegotiating the conditions of the agreement they currently have with Digi and that ends in 2026.
Yesterday, Telefónica announced its financial results. And, taking advantage of the situation, his management team also gave some of the keys to the current situation in the telecom sector, especially as a result of the merger between Orange and MásMóvil. The consequences are both for the blue operator and for the rest of the agents who carry out their activity in this area, opening a new scenario for all of them.
Ángel Vilá, CEO of the company, stated that “with the Orange-MásMóvil merger A new scenario opens up because Telefónica is no longer a leader in the retail business, which should result in deregulation and things that until now would have been scrutinized become possible.”.
A renegotiation
The merger between Orange and MásMóvil has received authorization from Brussels and Digi has been one of the great beneficiaries of it, since the new national giant chose the Romanian operator to receive the remedies of the merger. Becoming, with this movement, the fastest growing company in Spain.
Digi agreed with Orange and MásMóvil to purchase part of the radio spectrum for value of 120 million euros. With this movement, it was ensured that it had the necessary infrastructure to be able to build its own mobile network in our country. In addition, the pact also contemplates the option of a wholesale rental contract for the use of its mobile networks with certain more advantageous conditions. However, it should be noted that this is an option, not an obligation. Therefore, the final decision will be subject to the needs that the operator may have.
During yesterday’s session, Telefónica’s management stated that it is in negotiations with Digi to extend the agreement for the use of their network, whose end date is in 2026. In addition, to affirm that they feel “great respect” by the operator and that they hope to continue expanding their commercial relationship.
Taking advantage of the situation, he also recalled the complexity that arises from migrating a customer base from one network to another, in addition to highlighting the quality of Telefónica’s telecommunications networks, both fixed and mobile.
Relationship with Vodafone
Vodafone was another of the main topics of the day. Angel Vilá confirmed that Telefónica has had talks with Vodafone to share its fiber network in the event that the red operator decides to end its cable network.
However, the conversations took place before Zegona came into action. However, this does not change the plans of the blue operator, which stated that the offer was maintained and showed its willingness to “contemplate scenarios” at the time when Zegona assumes control of Vodafone operations in our country and the transition is completed.
Collaboration can be structured through different ways: from a commercial agreement to carrying out a more structural operation that allows the pooling of its assets. However, this last scenario may entail greater complexity as a result of regulatory and competition implications.
