Spanish regulator rejects calls to suspend Telefonica/Yoigo deal

Spanish regulator rejects calls to suspend Telefonica/Yoigo deal

29 NOV 2013

CNMC, the new Spanish regulator, said it will not provisionally suspend the network-sharing agreement between Telefonica and Yoigo as investigations get underway on whether or not the deal is anti-competitive.

Jose Maria Marin Quemada, CNMC president, quoted by Europa Press, said suspension until the investigation is over – requested by rivals Vodafone and Orange – would not “improve or accelerate the investigation process”.

Telefonica and Yoigo now have a free run until CNMC’s work is complete, which could take up to 18 months.

Under the terms of the infrastructure-sharing arrangement, Telefonica (running the largest mobile network in Spain) can access the LTE network of Yoigo (the smallest operator) to offer services.

Yoigo can also bundle its larger rival’s fixed voice and broadband with its own mobile services.

In addition, the two partners have extended an existing national roaming deal whereby Yoigo has access to Telefonica’s 2G and 3G network.

Vodafone and Orange complain that the deal unfairly restricts competition, involving unprecedented close cooperation between the two operators

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Ken Wieland

Ken has been part of the MWC Mobile World Daily editorial team for the last three years, and is now contributing regularly to Mobile World Live. He has been a telecoms journalist for over 15 years, which includes eight...More

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