The EC will require Digi to be the fourth operator in Spain to approve the Orange-MásMóvil merger, according to Scope

MADRID, 29 Ago.

The EC will require Digi to be the fourth operator in Spain to approve the Orange-MásMóvil merger, according to Scope


The European Commission could make as a condition for the approval of the merger between Orange and MásMóvil that a fourth telecommunications operator be established in Spain, according to an analysis by Scope Ratings, which points out that Brussels' favorite for this would be Digi.

In his assessment of the current situation of the merger, Scope Ratings analyst Jacques de Greling is based on the demands of the European Commission to give the 'green light' to a similar operation in Italy, specifically, that of Hutchinson and Wind Tre .

In the case of the operation in the transalpine country, Iliad entered the market as a new mobile network operator, therefore, in the analyst's opinion, the European Commission "could demand the creation of a fourth mobile operator in Spain, most likely around the Spanish subsidiary of Digi", which is currently only a virtual mobile operator (MVNO).

To do this, De Greling points out that Orange and MásMóvil should sell part of their spectrum and their network components to Digi, as well as sign a "favorable roaming agreement" within the framework of the possible conditions ('remedies') that could be imposed the European Commission to give its approval to the merger.

However, there are several companies in the sector that are awaiting the resolution of the European Commission to try to acquire these possible 'remedies'.

On July 28, the European Commission postponed its investigation into the merger of both companies without a date because they had not provided certain "important information" requested by Brussels on time, so the final decision will be taken beyond September 4. , initial date set to approve or not the operation.

As the Community Spokesperson for Competition, Arianna Podesta, pointed out at the time to Europa Press, "once the parties provide the missing information, the clock starts up again and the deadline for the Commission's decision is adjusted accordingly."

Likewise, sources familiar with the situation also told Europa Press that the Brussels decision seeks to "have more time to assess the impact of the operation on competition."

Brussels began an in-depth investigation last April to determine whether the operation, which will create a new customer leader in Spain, could put competition at risk in the offer of multiple service packages and in mobile and fixed broadband retail service .

Thus, at the end of June, Brussels withdrew its considerations on the impact that this operation could have on the wholesale market, that is, with regard to an operator offering its networks to others.

However, he pointed out that he fears that this operation -valued at around 18,600 million euros- will reduce the number of network operators in the Spanish retail markets for mobile telecommunications and internet services and this will result in "big price increases" for the end customers.