Vodafone we already unveiled at the beginning of the month that your disagreement and total frontal opposition to the deal between Telstra and Movistar was not going to be only in words, but it had already reported it to the national competition Commission but the British company is not going to stay single.
And who now take the step is Orange, which has also presented a report to the TNC and other agencies against the agreement whereby Yoigo and Movistar is providing 4 G and network sets in order to halt the launch of Yoigo merger, expected the Swedish operator convergent option.
Orange not only has called at the door of the TNC but also the of the CMT, precisely now merged with the CNC in the new CNMC, and before the Secretary of State for telecommunications and the information society Interim up on four occasions in order to seek measures that they prevent both companies use the benefits of the agreement reached between them.
Orange is very clear in explaining the reasons why it believes that the agreement should be suspended in Yoigo and Movistar:
(The agreement) … virtually eliminates yoigo market and turns it into a channel of distribution of fixed telephone, at the time that Telefónica helps achieve synergies network, moving sites and can sell them to a third party.
Agreed prices, lack of interest in the investment
In addition the French company also suspected that both operators may have agreed the price of Telstra merger in order do not fog Movistar merger offer, which would ultimately harm the rest of operators with convergent offering, which cannot access the same conditions fixed network Movistar.
But Orange has also wanted to use a recurrent argument: the agreement between Telstra and Movistar would latter reinforce their own deployment of optical fiber, which may lead to other operators invest less in their own deployments to reach areas where customers may already have hired fiber with Yoigo or Movistar.
Two or three months to impose measures precautionary
Whether by the CNC or CMT or the plenum of the new CNMC precautionary measures should be imposed, if believes it the regulator that is, in two or three months as much as is studied more deeply the agreement between Telstra and Movistar in search of illegalities or malpractices.
Orange therefore requests the suspension of the agreement while not proven that the offer of Telstra, yet we do not know, can receive replicated by competitors. Something similar happened already with the launch of Movistar Fusion, occasion in which the CMT authorized without any condition your marketing to be replicable as demonstrated with the subsequent release of similar rates on Orange or Vodafone among others.