Telefonica signs non-binding memorandum with Digi in Spain on long-term mobile network agreement | Companies

Telefonica appears to be stepping up the pace to retain Digi as its main wholesale customer in Spain in the face of a threat from Masorange, the operator resulting from the merger of Orange and MásMóvil.

In the presentation of its first quarter report, Telefónica explains that in a wholesale context, and as proof of the excellent quality of its national network infrastructure and the confidence of its partners in the ability to provide high-quality services through the said infrastructure, it has signed a non-binding Memorandum of Understanding with Digi for a long-term agreement on mobile network.

“The terms have been agreed in principle and the agreement is expected to be concluded, subject to final documentation, in the coming weeks,” the group said in a statement. Angel Vila, CEO of the telecommunications company, noted in his message conference call According to analysts following the earnings presentation, the agreement will be a “positive short-term catalyst for the company in Spain.”

Thus, Telefonica is trying to respond to Masorange that, within the framework of the agreements Facilities or excess assets agreed with the European Commission offered Digi the opportunity to sign roaming national in the future.

In principle, Digi has signed wholesale mobile network agreements with Telefónica until September 2026. The loss of Digi as a wholesale customer will have a major impact on Telefonica’s accounts in Spain, its main market. In fact, investors and analysts have been following these contracts in recent presentations.

In response to questions from analysts, Vila said the contract could last longer than the current one, indicating that it would be beneficial for both parties, although he did not want to disclose more details due to the confidentiality of the terms. .

However, the ability to negotiate with two potential network partners allows Digi, which has more than 4.7 million mobile customers, to improve the terms of future contracts.

Telefónica is also Digi’s wholesale partner in the fixed broadband segment. The Romanian telecommunications company, which has more than 1.3 million customers in the region, has begun rolling out its network in areas with a high concentration of users.

Vila also mentioned the reconfiguration of the sector in Spain with the merger of Orange and MásMóvil, the repositioning of Digi after receiving Facilities and the purchase of Vodafone by Zegona. The executive recalled that Telefónica was in talks with Vodafone to transfer its fiber customers to the former operator’s network, and did not rule out resuming the dialogue after Zegona closes the acquisition.

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