Almost two years later, we have a new telecommunications giant. It is called Masorange, and it is the result of the complete merger of Grupo MásMóvil and Orange. The new company will become the automatic leader in the Spanish market by number of clients, and also one of the 20 largest companies in Spain by revenue.
Scandal figures. The figures are certainly spectacular: Masorange was born with more than 30 million mobile lines, more than 7.3 million users and 2.3 million users of its television platform. Its market share is more than 40% in both landline and mobile.
Clients everywhere. FTTH (Fiber To The Home) coverage is the largest in Spain according to those responsible: 20 million marketable homes with fiber optics, in addition to 98% 4G mobile coverage and more than 80% 5G coverage in more than 2,500 Spanish municipalities .
The Masorange management team, from left to right: Germán López (COO, former CEO of MásMóvil), Meinrad Spenger (CEO/executive director, former CEO of MásMóvil), and Ludovic Pech (CFO, former CEO of Orange)
Future investment. The company has announced in this inaugural statement its intention to invest around 4,000 million euros in the next three years. Among other things, to increase its 5G coverage to above 90% of the population, in addition to covering up to six million additional homes and more than 1,700 new municipalities with fiber optics.
New giant of the Spanish economy. The merger of these companies has required a long process of analysis and approval by regulatory bodies, but results in a company that is among the 20 most important in Spain by revenue volume with more than 7.4 billion euros. an operating result (EBITDA) of 2.6 billion euros and a valuation of the combined company of more than 18.6 billion euros.
One company, many brands. Although the parent company will be Masorange, the company indicates that (at least, a priori) the brands that have led it to its current success will continue to exist. Thus, it will have ten brands at the national level (Orange, Yoigo, Jazztel, MásMóvil, Simyo, Pepephone, Virgin Telco, Lebara, Lyca and Llamaya), and five at the regional level (Euskaltel, R, Telecable, Guuk and Embou).
Telefónica and Vodafone, behind in broadband… The market for large telecommunications operators is transforming in Spain. As indicated our colleagues from Xataka Móvil, Masorange is in first position in broadband market share with 41.8%, ahead of Telefónica, which moves to second place with a 33.5% share. In third place is Vodafone with 16.7%, while Digi is fourth in relevance with 7.2%.
And on mobile lines (but not on TV). In the mobility segment the situation is even more pronounced: Masorange has a 42.8% market share, while Movistar has 27%, Vodafone 22% and Digi 7.5%. In users of television platforms, however, Movistar leads with a 48.5% share ahead of Masorange’s 31.6% and Vodafone’s 19.9%.
Less competition. The merger has an immediate effect on the telecommunications panorama in our country, where we now have one less player. As they comment on Xataka Móvil, that can reduce competition. That makes now be Digi the most aggressive in prices and growth possibilities, but there are other aspects to consider.
Football. For example, the future of television broadcasts and football: Now Orange will have more clients in the negotiation, based precisely on the number of users of each platform. There may be a reduction in MVNOs operating in Spainand in the spotlight are established brands such as Simyo, Jazztel, Yoigo or Pepephone, with a scheme that could be simplified.
Telefónica is no longer so Telefónica (and that is not necessarily bad). The other unique effect of the birth of Masorange is that Telefónica is no longer the dominant operator, which will prevent some initiatives from being slowed down and will also allow it to be more commercially aggressive.
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