MásMóvil has announced a new fibre and mobile network agreement with Orange Spain that is says will allow the Company to improve its competitive position and increase its profitability in a relevant way.
Thanks to this agreement, MásMóvil has guaranteed it access to the new 5G technology under favorable conditions, significantly increases its fibre optic network – own and with rights of use – up to 14.2 million of homes in 2020 (about 2/3 of current households with fibre in Spain) and generates relevant savings (€40 million per year), which allows the Company, together with the good commercial momentum it is going through, to substantially improve its guidance for 2019 and 2020, and to provide, for the first time, a guidance for 2021.
In addition, MásMóvil says its customers will continue to enjoy the fastest networks in Spain and the best mobile coverage.
“This new agreement will allow us to finalise the development of a unique model in Europe for the construction of our own high-speed networks of the fourth operator in the most efficient possible way. In addition, together with the good commercial and financial progress recorded by MásMóvil in the first half of the year, we have substantially improved our guidance”, said Meinrad Spenger, CEO of MásMóvil.
In addition, MásMóvil will benefit from the deployment in Virtual Active Sharing mode of a high quality 5G network of up to 4,500 locations that will cover 35 per cent of the population including the 40 largest cities in Spain – Madrid, Barcelona, Valencia, Seville, Zaragoza, Malaga and Bilbao, among others – where is expected more relevant consumption of these services. This agreement will involve an additional opex of €10 millio until 2023 and will remain stable from 2024 onwards.