In the wake of completing its acquisition of mobile network operator (MNO) Yoigo, Spain’s Grupo MASMOVIL has announced an agreement with another local cellco, Orange Espana, related to national roaming, site sharing and fibre-to-the-home (FTTH) wholesale access.
In a filing with the local stock exchange, Grupo MASMOVIL confirmed that from 1 January 2017 its customers will be able to connect to both the mobile network it now has as a result of the Yoigo acquisition, as well as the infrastructure belonging to Orange Espana. With regards to the former network, Grupo MASMOVIL confirmed that this has now been entirely LTE-enabled and covers 85% of the population. Alongside this, Grupo MASMOVIL also revealed that as part of the wide-ranging agreement, it will share radio towers with Orange Espana for future mobile network deployments.
Under the new agreement, Grupo MASMOVIL will gain wholesale access to Orange Espana’s entire fibre broadband infrastructure, which currently passes more than 8.3 million premises. Notably, the two companies are already collaborating in the fibre arena, with the pair having announced plans to cooperate on a joint FTTH network rollout covering some one million premises in July 2016. As previously reported by TeleGeography’s CommsUpdate, under that plan Grupo MASMOVIL will deploy FTTH to around 500,000 premises in low competition areas, either low population locations, or those areas where the technology has yet to be deployed by any other operator, while Orange Espana will roll out fibre covering a further 500,000 premises in areas of more intense competition, such as the nation’s larger cities.
While detailed terms of the latest agreement between Grupo MASMOVIL and Orange Espana remain confidential, the filing by the former did note that it expects the deal to enable it to achieve 100% of cost savings – totalling EUR60 million (USD67 million) – related to the acquisition of Yoigo. Further, Group MASMOVIL has argued its dealings with Orange will allow it to optimise its cost structure, expand its networks efficiently, and materially increase the marketability of its converged service offerings.