TeliaSonera’s subsidiary Yoigo and Telefonica’s Movistar in network sharing agreement to provide better services to more customers
- 2013-08-01 12:15 UTC
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 better and faster mobile services on Yoigo’s 4G 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.
TeliaSonera AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The information was submitted for publication at 2.15 p.m. CET on August 1, 2013.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of TeliaSonera.