The new agreement with Orange will see the Full MVNO service provided by Orange to Telenet run until the end of 2018. Telenet committed to a minimum payment of EUR 150 million (excluding VAT) over the three-year period 2016-2018. The actual amount paid by Telenet could exceed this in the event of higher network usage. Beyond 2018, Telenet has an option to extend the agreement for another six months, for a minimum EUR 15 million. The agreement also puts an end to all outstanding legal disputes between the companies, including the judicial recovery of invoices under the Full MVNO agreement.
The deal suggests Telenet may take some time to invest in the Base network before moving over its customers. Under the original agreement with Orange, the MVNO services were scheduled to run until the end of 2017. Telenet said in April that it expects to invest more than originally projected in Base, at a total EUR 300 million, or EUR 60 million more than first forecast. Expected synergies from the merger will also be higher, at EUR 220 million per year by 2020, versus the initial estimate of EUR 150 million.
