Spanish newspaper says operator keen to acquire 3.5GHz spectrum which the merged entity must sell as part of the pro-competition remedies imposed on it
Telefónica is said to be negotiations with the newly merged operator MásOrange to acquire spectrum assets it must sell to comply with the terms on which the European Commission granted it permission to merge.
Unnamed sources are cited by the Spanish business newspaper Expansión saying that negotiations are on-going. Telefónica’s 5G coverage (under its Movistar brand) covers about 85% of Spain and the additional spectrum would boost its already strong position.
However, since the merger, Movistar has the second-largest customer base of 20.1 million (at 31 December 2023) as Orange and MÁSMOVIL’s combined total is 30 million.
Remedies and regulation
The European Commission approved the merger in February but imposed remedies to foster competition The merged entity exceeds Spain’s regulation that a single carrier cannot hold more than 140MHz holding of 3.5GHz hence post-merger, it must divest itself of the excess.
In a complex agreement, MVNO Digi Spain, acquired 20MHz. The MVNO is owned by Romania’s Digi Group and has ambitious plans to expand in Spain and become the fourth operator.
Once the dust is settled on the Digi deal, 30MHz MásOrange must still divest itself of 30MHz in the 3.5GHz band.
On the fixed front
At the end of last week, Expansión also reported that MásOrange is in negotiations with Telefónica about a fixed access deal. Apparently the two pair hope to strike a deal that would allow each to offer fixed broadband services using the other’s infrastructure.