Orange and MASMOVIL have today obtained clearance from the European Commission to combine their operations in Spain, forming a 50-50 joint venture (JV) co-controlled by Orange Spain and MASMOVIL (LORCA JVCO). This deal will create a single operator with the scale to invest in 5G and fiber, benefiting consumers and businesses across Spain. Orange said this transaction does not include TOTEM Spain and MASMOVIL Portugal.
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Nationwide Coverage and Infrastructure Investment
The combined operator would serve over 7.3 million fixed customers, over 30 million mobile service users, and over 2.2 million TV customers. Mobile services in Spain include prepaid, contract, and mobile broadband voice and data packages.
Financial Projections
The combined entity will manage network and IT assets to ensure nationwide coverage in FTTH and 4G/5G. Financially, the venture is projected to generate revenues exceeding EUR 7.4 billion, with an EBITDAaL of over EUR 2.3 billion and an enterprise value of EUR 18.6 billion.
Spectrum Divestment
As reported earlier by TelecomTalk, as part of the merger under a remedy package, 60 MHz of spectrum assets will be divested to Digi, pending approval from the Spanish Government, and an optional national roaming agreement at market conditions will be proposed.
Also Read: Digi Spain Officially Rolls Out 5G Services for All Customers
Orange commented: "Today's announcement is a crucial moment for the future development of the Group in Europe. Our proposed Joint Venture with MASMOVIL will create a single, stronger, and more sustainable player in Spain."
"All good things are worth waiting for! We are thrilled to assume a relevant role in the Spanish telecommunication sector," said MASMOVIL.
Orange and MASMOVIL plan to complete the transaction by the end of the first quarter in 2024. Until all closing conditions are met, both companies will continue to operate independently.
Also Read: Masmovil Group Fibre Network Reaches 29 Million Homes Passed in Spain
MASMOVIL Spain
With its FTTH coverage in Spain, reaching over 29 million marketable households, and 3G, 4G, and 5G mobile networks covering 98.5 percent of the Spanish population, MASMOVIL employs a hybrid strategy combining its own infrastructure with that of third parties. MASMOVIL has also launched 5G services, now available in over 2,200 cities across Spain, serving close to 16 million customers by the end of the first nine months of 2023.
