Spanish cable company Telecable de Asturias has agreed to port its MVNO business to Telefónica, quitting the arrangement it had with Vodafone.
UK-based Zegona Communications, which owns the Spanish firm, said the new “long-term” deal will see Telecable gain access to Telefónica’s full range of mobile technologies, including its 4G data services, “on highly attractive terms”.
The new financial terms and 4G access will allow Telecable to upgrade its mobile offers, and to raise ARPU, reduce churn, and improve its margins as a consequence, Zegona said.
Eamonn O’Hare, Chairman and Chief Executive at Zegona, commented: “This innovative agreement, with its redesigned economics, gives Telecable access to the highest quality mobile network in Spain and enables us to offer our customers a market leading mobile service, including high speed 4G data. We are excited by the opportunity this creates for Telecable to accelerate the growth of its business while also improving its financial returns.”
Telecable expects to migrate its customers to the new service during the first six months of 2017.
Zegona, established to “buy, fix and sell” European technology and media firms, snapped up Telecable for €640 million last summer.
It failed in its bid to acquire Spanish mobile operator Yoigo from Telia earlier this year.