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Spain's Yoigo and Movistar Sign network sharing agreements

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TeliaSonera's Spanish subsidiary Yoigo has reached a series of agreements with Telefonica's subsidiary Movistar enabling Yoigo to sell combined fixed mobile services to its customers. In addition, Movistar will be able to offer its customers access to Yoigo's LTE network.

The agreement includes the commercial distribution of Telefónica's fixed services by Yoigo. This enables Yoigo to offer its customers an integrated fixed mobile service - a service package of voice and fixed broadband with one or more mobile lines, including the subscription fee, at a fixed price and with one invoice only.

The integrated product, which Yoigo will be able to commercialize in all its sales channels, will include its own mobile services and Telefonica's fixed services of voice and broadband, both ADSL and fiber.

The network sharing agreement will also provide Telefonica access to Yoigo's 4G network. Yoigo was the first operator in Spain to announce the launch of 4G services and consequently 4G was launched in Madrid in July. By the end of 2013 Yoigo's 4G network will be available to 48% of the Spanish population and will continue to grow in 2014. This is the largest 4G network announced in Spain and will now be available to Movistar's customers. In order to secure the desired access speed in the 4G network, Yoigo will contract Telefonica's transmission capacity to its 4G sites.

As part of the agreement the current national roaming contract for Yoigo to use Telefonica's 2G and 3G networks, signed in 2008, has been extended to 2016. This allows Yoigo to continue to offer mobile voice services throughout all Spain.

In parallel to the above mentioned agreements, Yoigo and Telefónica have reached an agreement with Abertis Telecom to acquire mobile telephone towers from Yoigo and Telefonica, with the aim to improve cost efficiency. The agreement is expected to be carried out in the fourth quarter of 2013 and will generate sales proceeds of EUR 60-70 million for Yoigo and reduce future operating costs.

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Tags: yoigo  telefonica  lte  Spain