Movistar is in talks with Digi and offers Vodafone to use its fiber coverage

Yesterday Telefonica announced its financial results. And taking advantage of the situation, its management team also gave some clues to the current situation in the telecom sector, especially as a result merger of Orange and MásMóvil companies.

Angel Vila, the company’s CEO, stated that “With Merger of Orange and MásMóvil A new scenario opens up as Telefonica is no longer the leader in the retail business, which should lead to deregulation and what has been carefully studied so far becomes possible.“

Negotiation

merger of Orange and MásMóvil received permission from Brussels, and Digi was one of its biggest beneficiaries, as the new national giant chose the Romanian operator to receive Facilities mergers. Thanks to this movement we become the fastest growing company in Spain.

Digi has agreed with Orange and MásMóvil to purchase part of the radio spectrum for cost 120 million euros. Thanks to this movement, the availability of the necessary infrastructure to build our own mobile network in our country was guaranteed. In addition, the pact also provides for the possibility of a wholesale lease agreement for the use of its mobile networks on some more favorable terms. However, it should be noted that this is an option not a duty.

At yesterday’s meeting, Telefonica management said it is in negotiations with Digi extend the agreement for the use of its network, the expiration date of which is 2026. Also, confirm that they believe “great respect» operator and that they hope to further expand their commercial relationship.

Taking advantage of the situation, he also recalled the difficulties that arise when moving a customer base from one network to another, and also emphasized the quality of Telefonica’s telecommunications networks, both fixed and mobile.

Relationship with Vodafone

Vodafone was another of the main topics of the day. Angel Vila confirmed that Telefonica was in talks with Vodafone to share its fiber network in the event the red operator decides to shut down its cable network.

However, conversations took place before Zegona entered the fray. However, this does not change the plans of the blue operator, which stated that the offer remains and has demonstrated its readiness “think through scenarios

Cooperation can be organized through different ways: from a commercial agreement to a more structured transaction that allows you to combine your assets. However, this latter scenario may entail greater complexity due to regulatory and competitive implications.