MasOrange aims to increase its 5G coverage to above 90% of the Spanish population
MasOrange, Spain’s largest mobile operator as a result of the merger between local carriers Orange Spain and Masmovil, plans to invest 4 billion euros ($4.31 billion) in the European country within the next three years.
In a statement, the new entity said that the investment will be chiefly oriented for the deployment of 5G and fiber optic networks as well as new services.
The 50-50 joint venture, which currently has over 30 million mobile customers, said it expects to generate synergies of more than 490 million euros per year by the fourth year of the transaction’s closure.
The telco also noted it aims to increase its 5G coverage to above 90% of the Spanish population, adding that it will cover with fiber optics up to 6 million additional homes and more than 1,700 new municipalities across Spain.
Orange and Masmovil have recently completed a joint venture combining their operations after the clearance provided by the European Union and the Spanish government.
Earlier this month, the Council of Ministers of Spain gave the approval for the Orange-Masmovil merger “with specific commitments and conditions”, including the implementation of an “ambitious industrial plan”.
Spanish government approval for a transfer of frequencies was the final clearance required for the Orange-Masmovil merger after the European Commission (EC) ratified the merger last month.
The European body had said the approval is conditional upon full compliance with a commitments package offered by Orange and Masmovil.
During its in-depth investigation, the commission said it gathered extensive information and received feedback from market participants and other stakeholders. Following its investigation, the body said it had concerns that the transaction, as initially notified, would restrict competition in the retail markets for the supply of mobile and fixed internet services in Spain, whether offered standalone or in bundles.
However, to address the commission’s competition concerns, Orange and Masmovil committed to divest spectrum held by MasMovil to Spanish MVNO Digi Communications across three frequency spectrum bands, two medium frequency bands (1,800 MHz and 2,100 GHz) and one high frequency band (3.5 GHz). The mobile spectrum to be divested will enable Digi to build its own mobile network.
The two carriers also committed to enter an optional national roaming agreement, which Digi can decide to use or not. The possibility to use the JV’s network will complement Digi’s own network, which Digi will start rolling out with the use of the divested spectrum.
The new JV was initially announced in July 2022.
