The telecommunications companies Orange and MásMóvil announced last Saturday that they had reached an agreement to merge its 50% operations in Spain. In this way, the joining of both companies will turn them into two companies. in the leading operator in customers in the country, with 20 million of mobile network and around 1, 5 million of television. Likewise, as indicated in the communiquéset that they issued to break the news, this operation will rise to a group worth 18.6 billion euro.
Today we announce that @ Orange and @masmovil have signed an agreement to unite their operations in Spain. Good morning! https://t.co/JqPmrGQwUa via @orange_es
— Orange Spain (@orange_es) July 23, 2022
Although the negotiations started in MarchHowever, the effects of this agreement for the clients of both companies are still an unknown. However, the group has already revealed what its intentions are regarding the installation of 5G and fiber to the home. In addition, other movements in the 'telco' market can also be expected., which now has three large groups instead of the four it had until now (Telefónica, Vodafone, Orange and MásMóvil).< /p>
Investments in 5G and FTTH
The merger between Orange and MásMóvil will allow “accelerate investments in FTTH (optical fiber to the home) and 5G“. so held by both operators in the joint statement released last Saturday to announce this new alliance. “This agreement paves the way for the creation of a joint company that unites the forces of Orange and MásMóvil in a single operator< strong> stronger, which will allow investments in 5G and Fiber, benefiting customers all over Spain “, he explained. Christel Heydemann, current CEO of Orange.
Until now, Telefónica was the only multinational with sufficient capacity to carry out the deployment of the 5G network in a reasonable time. Now, this new actor promises to shake up the market based on a strategy of economies of scale.
Television ;n and football
Despite the fact that the operator establishes that this agreement allows “to ensure the future of competition in infrastructures in Spain”, the truth is that by going from four to three < strong>big playersit is not unreasonable to think that offers and commercial campaigns aimed at attracting new clients could be reduced. However, television payment, especially linked to the exclusive emission of football, will be one of the great axes of telecommunications in the coming years.
At the moment, Telefónica and DAZN They have an agreement until 2027 to broadcast the competitions of the Spanish League and the Champions. For its part, Orange pays the company with central offices in Madrid to have access to said content. so Thus, the threat of 'streaming' services, with names like Amazon Prime Video on the table, and the possibility of a return to the bidding of large operators such as Vodafone could lead to new combined packages > or 'all in one'.