A balloon with the logo of MasMovil is seen during its bourse debut in Madrid, Spain on July 14 2017. File Picture: REUTERS/Juan Medina
The pandemic, however, has underscored the importance of telecom networks, and regulators may have become more sympathetic to mobile operators trying to cut debt through mergers and invest in new 5G services, industry analysts say. The Orange-MasMovil tie-up, between Spain’s second- and fourth-largest telecom operators, is the first big deal since the European Commission blocked CK Hutchison’s $12.6bn purchase of Telefonica’s British mobile unit O2 in 2016.
Orange will seek to counter possible regulatory concerns by pointing to the rollout of fibre in Spain and the expansion of mobile companies into areas such as broadband as proof of strong competition in the country, a person familiar with the matter said. In contrast, the US is dominated by three main players — AT&T, Verizon and T-Mobile. That can result in higher prices for customers and higher profits for the companies.