After the presentation of its financial results for the year 2023, Telefónica executives They offered a press conference in which they answered questions about the merger of Orange and MásMóvil, the intentions of SEPI and the entry of STC.
They have also talked about their possible agreement with Vodafone, about the possibility of buying operators and about negotiations with Digiwhom they consider “a serious operator” and with whom they trust to achieve “an extension of the agreement satisfactory for both parties.”
“The merger opens a new scenario for everyone”
Both José María Álvarez-Pallete, executive president of Telefónica, and Ángel Vilá, CEO of the company, have once again insisted today that the merger of Orange and MásMóvil “opens a new scenario where Telefónica is no longer a leader“, so that should lead to deregulation.
The current regulation responds to reasons that, according to the directors of the Spanish telecom, have already expired: “we are neither a monopoly, nor an incumbent, nor do we have copper.” If there is finally deregulation, that will make Telefónica “gain a lot of competitiveness and open up many opportunities.” In this sense, They do not rule out future purchases of operators smaller, but they have not wanted to confirm if Avatel could be one of them.
Who they have talked about at length has been Digi, which will be the beneficiary, as we know, of the merger of Orange and MásMóvil. From Telefónica they assure that they have a good business relationship with Digiwhom they consider “a serious operator” and for whom they have “great respect.”
Ángel Vilá has recalled that the agreement with Orange gives Digi “an option, but not an obligation”. Furthermore, with the 60 MHz of mobile spectrum that they are going to buy, it will be able to create a network in some urban centers, Vilá said, but in the rest of Spain it will continue to be an MVNO.
The current regulation responds to reasons that have already expired: “we are neither a monopoly, nor an incumbent, nor do we have copper”
Therefore, Telefónica has already been in talks with Digi for some time to renegotiate the wholesale agreement which expires in 2026 and hopes “to achieve a satisfactory extension for both parties.” Among other things, due to the difficulties involved in migrating clients from one network to another.
Although they had already planned it, both Pallete and Vilá, by the way, have hinted at some disagreement with the wholesalers and have assured that “it has been a missed opportunity” due to how slow the process has been.
They maintain the offer to Vodafone
To questions about the entry of SEPI and STC In the company, Telefónica assures that they have no new news, nor is there any evidence that the Saudi company has requested a position on the Telefónica Board of Directors. However, Álvarez-Pallete has once again highlighted the satisfaction that comes with “when a foreign investor of that caliber is interested in Telefónica.”
There has also been a section dedicated to Vodafone. Ángel Vilá has explained that, as was already revealed at the time, there were conversations with Vodafone to share your fiber network if the red operator decided to turn off its cable network.
That was before the announcement of the purchase by Zegona, but “that offer remains” and they are “open to contemplating scenarios” when the British fund takes control of Vodafone Spain. These scenarios could be a trade agreement, one for access to fiber or even some structural agreement to unite assets, although the latter “would have more regulatory problems,” said Vilá.
