Spanish operator Orange stated in a statement that it had already exceeded its initial objective for the entire year by deploying its 5G services in 1,529 towns and cities over 52 regions in Spain. By the end of the third quarter, the European carrier reported that 68.7% of Spain's population had access to its 5G network infrastructure. Orange had stated that it anticipated having a 5G network in 1,500 locations by the end of 2022.
The Operator Had 1.47 Million Users by the End of September
5G services are now being provided by Orange Spain using frequencies in the 3.5 GHz and 700 MHz bands. After a net increase of 850,000 over the previous 12 months, the carrier concluded September with a total of 1.47 million 5G subscribers. Orange acquired 110 megahertz in the 3.5 GHz band in addition to 210 megahertz in the 700 MHz bands through the most recent spectrum auction. In total, the corporation spent 523 million euros (now $526 million) to purchase these frequencies. In September 2020, the provider made commercial 5G services available in Spain using Non-Standalone (NSA) architecture.
The CEO of Orange Spain, Jean Francoise Fallacher, stated during a presentation of the provider's quarterly results that the merger with rival operator MásMóvil should be approved unconditionally because the company believes the Spanish market to be extremely competitive, with eight operators billing more than 100 million euros annually. According to Fallacher, the number of infrastructure operators will decrease from eight to seven rather than from four to three. They stated that this is because MásMóvil has previously sold practically all of its network assets.
The CEO stated that the merger's primary objective is to establish a sizable operator with the financial resources to keep making investments in fibre optics and 5G. Thus according to him, there is a tendency toward consolidation across Europe, and everyone is keeping an eye on what's occurring in Spain.
Orange and Masmovil had inked a legally binding agreement to consolidate their businesses in Spain in July of this year. Based on the firms' since March-conducted due diligence procedure, they might achieve annual synergies of more than 450 million euros by the fourth year after the merger's closure. The 50/50 joint venture agreement specifies that both operators will have equal governance powers in the combined company. The agreement also contains a provision for both parties to initiate an IPO after a predetermined period of time, subject to specific criteria, and an option for Orange to assume control of the combined firm in that event.
