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MásMóvil updates its contract with Telefónica and will be able to add 500,000 fiber homes

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MoreMobile has updated its agreements with Telefónica for mobile and fixed networks with the signing of a new contract that will allow you to increase your fiber footprint in the short term by 500,000 more households and will give it access to future deployments of the fiber network of the Spanish multinational, as reported today by the fourth telecommunications operator to the CNMV.

The agreement provides for the migration of the mobile lines of Lycamobile, recently purchased by MásMóvil, from Telefónica's mobile network. This will allow MásMóvil that around a 85% of network synergies expected with the transaction can materialize as early as 2021.

In addition, the agreement establishes a cost reduction per giga, which will allow MásMóvil to absorb future increases in data consumption, and the extension of 'bitstream' wholesale access to Telefónica's FTTH network.

According to the group led by Meinrad Spenger, the agreement with Telefónica will also substantially reduce risk on operating margins This would derive from a potential increase in commercial penetration in Telefónica's FTTH network, through a mechanism for reducing wholesale prices linked to committed volumes.

The two groups have also agreed to extend the circuit service provision agreement (mobile and fixed 'backhaul'), agreeing to reductions in unit prices in exchange for certain minimum volume commitments.

28 MILLION SAVINGS

Taking into account the current customer base of MoreMobile in Telefónica's FTTH network, as well as its mobile client base, the teleco 'yellow' expects pro forma annual tax savings of € 28m in access, transmission, circuit and NRA costs.

Finally, the agreement incorporates minimum annual wholesale turnover commitments of approximately 100 million for the next five years. In the event that MásMóvil did not grow enough in those years, the minimum volume commitments could lead to a reduction in the expected savings.

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