Spain: Telcos row back on low cost promotions
September 27, 2018
From David Del Valle in Madrid
The damage of low cost promotions to Spanish telcos’ revenues is forcing them to renege on the hugely discounted promotions they have been offering.
Movistar has decided to withdraw its 50 per cent discount for a year for its convergent packages Movistar Fusión + Ocio Total and Fútbol Total.
The company’s rationale is that the plan to capture Vodafone football subscribers would has already been achieved with an estimated gain of 100,000 customers, according to market estimates, out of the total 350,000-400,000 Vodafone football subscribers.
Vodafone is also likely to follow suit by doing away with the 50 per cent discount offer for its convergent packages Vodafone One and Vodafone One Familia. The company would have lost around 20 per cent of its customers since the start of the football war this year (as a result of having no football).
Both Vodafone and Orange have pointed out that the present model with low cost promotions is unsustainable and puts at risk the financial futures of the companies.