Orange Group’s Spanish subsidiary is said to have submitted a formal complaint to the country’s competition watchdog related to a tie-up between rival mobile network operators Telefonica Espana (Movistar) and Yoigo.
As previously reported by CommsUpdate, in early August 2013 Movistar’s parent company Telefonica announced a series of agreements with Yoigo under which it would offer 4G services over the latter’ in-deployment LTE network. In return for granting Movistar access to its infrastructure, it was noted that Yoigo would be able to market a converging product comprising its own mobile services and Movistar’s fixed voice and broadband services. Further, the agreements also include the renewal of an existing national roaming deal under which Yoigo uses Movistar’s 2G and 3G network.
According to Reuters, Orange Espana is understood to have suggested that the agreement between its two competitors will hinder competition in the Spanish mobile market, claiming that the deal effectively removes the smaller player as a contender. To that end, it is said to have argued that Yoigo will become something of an off-shoot of market leader Movistar, with the agreement in essence helping the latter increase its fixed line market share. Having also said that the Yoigo/Movistar tie-up damages other players in the market, it is understood that Orange Espana is seeking a suspension of the agreement between its two competitors.