Spanish alternative telecoms operator Grupo MASMOVIL has announced it has signed ‘a new and comprehensive fibre and mobile network agreement’ with Orange Espana that will allow the company to improve its competitive position and increase its profitability. Meinrad Spenger, CEO of MASMOVIL, commented: ‘This new agreement will allow us to finalise the development of a unique model in Europe for the construction of our own high-speed networks … in the most efficient possible way. In addition, together with the good commercial and financial progress recorded by MASMOVIL in the first half of the year, we have substantially improved our guidance [for 2019-2021].’
As per the agreement, MASMOVIL has extended its existing national roaming agreement to receive guaranteed 5G access under favourable conditions. Orange expects to deploy a 5G network covering 35% of the population (including the 40 largest cities in Spain). MASMOVIL notes that its contract with Orange has been extended until 2028 and is extendable for a further five years. Further, wholesale access has been converted into a network capacity-based model. Finally, Orange has committed to deploying a total of 1,500 new cell sites by end-2021 to boost coverage.
In terms of fibre connectivity, MASMOVIL has increased its fibre-optic access to 14.2 million homes by 2020, which it says represents around two-thirds of all fibre-connected households in Spain. This figure includes 5.2 million homes that are only currently available to MASMOVIL via Bitstream access. As a result of the deal, MASMOVIL expects to save around EUR40 million (USD43.6 million) per year.