Spain’s largest mobile operator Telefonica has signed an agreement that will enable it to use the LTE network of its smallest rival Yoigo to offer services.

The same agreement also enables Yoigo to bundle its larger rival’s fixed voice and broadband with its own mobile services.

The two partners have also extended an existing national roaming deal whereby Yoigo has access to Telefonica’s 2G and 3G network.

However, at least one rival is not happy about the deal. Orange has asked Spain’s competition authorities to look into the deal, according to Reuters.

Telefonica is the only operator in Spain not so-far offering LTE services. This agreement will enable it to launch a service using Yoigo’s 1800 MHz frequencies.

The two companies say “they hope to start implementing this preliminary agreement in the final quarter of 2013”.

Telefonica says it is still intent on building its own 4G network once frequencies in the 800 MHz it was awarded in 2011 become available.

Yoigo is building out its LTE network using 2 x 10 MHz in 1800 MHz with a target of 48 per cent population coverage by the end of the year.

To achieve this goal, the operator will use Telefonica’s transport network and has contracted to take new transmission capabilities from its larger rival.

Finally, the two operators have signed an agreement with Albertis whereby the latter will acquire 4,227 pieces of passive infrastructure from them for €385 million, and then dismantling those “can be optimised”.