TeliaSonera’s Spanish subsidiary Yoigo has confirmed it has reached a series of agreements with Movistar. These agreements enable Yoigo to sell combined fixed-mobile services to its customers, while Movistar will be able to offer its customers mobile services on Yoigo’s 4G network.
The agreement includes the commercial distribution of Telefonica’s fixed services by Yoigo. TeliaSonera’s subsidiary will thus be able 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 with access to Yoigo’s 4G network. Yoigo launched is 4G services in Madrid in July. By year-end, Yoigo plans to extend its 4G network to 48 percent of the Spanish population. 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.
Yoigo and Telefonica have also signed an agreement with Abertis Telecom to acquire mobile telephone towers from Yoigo and Telefonica. The agreement is expected to be carried out in the fourth quarter of this year. Yoigo expects this agreement to generate sales proceeds of EUR 60-70 million and reduce future operating costs.
