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Vodafone and the ‘low cost’ companies respond to Orange and MásMóvil with new offers | Companies

In recent days, Vodafone and some of the main operators low cost They have launched new commercial offers. Some movements with which they seem to respond to the announcement of the negotiation between Orange and MásMóvil for their possible merger in Spain. The strategy of these companies, to a large extent, has focused on greatly increasing the number of mobile gigabytes for their customers, doubling or tripling in many cases the size of their bonuses, without price increases, or by increasing the speed of the fiber optics, also without new burdens for users.

In this sense, Vodafone, through Lowi, its brand low cost, has been one of the most active. In a few days, Lowi has announced the improvement of the fiber speeds it offers in its convergent rates, in such a way that 100 Mbps Fiber + Mobile customers with 10 GB of data have gone on to browse at 300 Mbps access speed , without price increase. Almost in parallel, Lowi has given away a new bonus of free gigabytes within the LosdeLowi loyalty program, with which its customers will be able to have 20 GB of additional data to those contracted in their rate.

Lowi has become one of the growth paths for Vodafone in Spain in recent times. Between October and December 2021, the brand added another 83,000 customers, and now has a total of 1.4 million.

In turn, within the Vodafone brand, the company has renewed its prepaid mobile rates, increasing mobile gigabytes for customers, maintaining the same prices. In some cases, the increase has meant almost tripling the data. The cheapest, Prepaid S, has gone from 10 to 20 GB, for 10 euros per month, while the most expensive, Prepaid XXL, has increased from 55 to 150 GB, with unlimited calls in Spain, for 40 euros.

Along the same lines, Finetwork, which already has more than 800,000 customers, has improved its rates in recent days, has reported an increase in gigabytes for browsing in its mobile rates and has raised the minimum speed of fiber access in its convergent packets, from 100 Mbps to 300 Mbps.

The company sells mobile rates from 6.90 euros per month, with 15 GB and unlimited calls, up to 19.90 euros, with 100 GB and unlimited calls. In the converging segment, Finetwork, which has relied on relevant sports sponsorships to improve the positioning of its brand, sells fixed-mobile rates from 29.90 euros, with fiber optics at 300 Mbps and 10 GB on the mobile.

A few days before the announcement of Orange and MásMóvil, Digi announced a broad renewal of rates, both mobile and convergent, with which it increased the pressure on the entire sector. the romanian company low cost, which has established itself as the fifth operator with 2.97 million mobile lines and more than 480,000 fiber lines (it will be the fourth operator if there is a merger), drastically expanded the GB of navigation, without a price increase. Its rate of seven euros per month went from 5 to 7 GB, while the most expensive, of 20 euros, increased from 40 to 100 GB.

In fiber, it is marketing 1 Gbps, from 20 euros per month, in the available areas, which can be combined with a mobile rate between 5 and 12 euros per month, depending on the gigabytes contracted.

New offers

Industry sources point out that the commercial pressure will continue, with new movements from the different companies, especially in this transition period, first until Orange and MásMóvil close their agreement and, if so, until the operation is closed. Both telecoms indicated that the agreement would be reached during the second quarter of 2022, while its closure, if the green light is received from the competition authorities, would be in the second quarter of 2023.

The operators want to take advantage of this period of time, with the possible slowdown in the commercial activity of Orange and MásMóvil, to attract new customers.

Possible effects on the transaction

descents. The market is already analyzing the conditions that the competition authorities could impose on Orange and MásMóvil for their merger. And the current situation of competition between the operators could also have its effects. According to industry sources, an important consequence of this scenario of renewed commercial pressure from operators low cost it would be that competition is not going to be significantly affected by the possible merger of Orange and MásMóvil, because prices continue to fall.

Terms. A second consequence, in his opinion, would be that, as competition continues in the sector, the need for possible remedies to approve the transaction by the competition authorities, possibly the European Commission, should be lower.

Evolution. Spain is considered the most competitive country in Europe in telecommunications, even ahead of Italy. Since the beginning of the liberalization of the market, in 1998, the sector has accumulated a drop in prices of more than 26%, while the general CPI rises in the same period by around 51%.

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