EC sets February deadline for MásMovil-Orange decision

Source: European Commission

The EU’s competition watchdog has set a February 15 deadline for its decision on the merger of MásMóvil and Orange España.

The setting of the deadline follows remedies offered by the companies to address the EC’s competition concerns.

The competition regulator had paused its probe in July to wait while the two parties provided additional information. Since then, Romania-based Digi, which operates fixed and mobile services in Spain, has offered to acquire key assets that should see the deal pass.

Digi Spain said last week that it had struck a spectrum transfer agreement for the purchase of the spectrum licenses for the private use of the radioelectric public domain related to certain sets of blocks of frequencies in the 1,800 MHz, 2,100 MHz and 3,500 MHz bands.

Digi will pay €120 million to MásMóvil to acquire 2 x 10 MHz in the 1,800 MHz band, 2 x 10 MHz in the 2,100 MHz band and 20 MHz in the 3,500 MHz band.

Digi Spain and Orange have meanwhile struck an an option agreement whereby the latter grants Digi Spain the option to enter in the future into a national roaming service agreement via a wholesale service, giving Digi access to the mobile networks of Orange España and affiliates including MásMóvil.

The agreement should help drive consolidation in the crowded Spanish market. While Orange and MásMóvil are awaiting approval of their proposed merger, UK-based investor Zegona Communications is moving ahead with its planned acquisition of Vodafone’s Spanish operation.