A merger of Orange and Masmovil in Spain will create a new entity with about 25 percent share of the access business revenue in Spain (both mobility and fixed network services).
At least some observers believe the proposed deal with provide clues about regulator willingness to allow more consolidation in EU markets that reduce the number of main competitors from four to three.
The deal would create a telecom market with three leaders: Movistar (Telefonica), the new firm and Vodafone.
The firms are likely to make the argument to regulators that the deal should be approved to allow the new firm, jointly owned by Orange and Masmovil, to speed up investments in 5G and next-generation platforms.
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