Telecable finds new path for mobile after thwarted Yoigo move

telecableZegona Communications-owned Spanish regional cable operator Telecable has struck a deal with Telefónica that will enable it to offer the latter’s full range of mobile technologies, including LTE data services to its subscribers at what Zegona called “highly attractive terms”.

Telecable expects to migrate its mobile customers to the new service during the first six months of 2017.

According to Zegona, the new deal will deliver improved economics on its previous mobile offering, enabling it to upgrade its offerings while protecting margings.

The operator’s deal with Telefónica will enable it to offer upgrades to customers as demand for data grows.

The deal with Telefónica comes four months after Zegona failed to secure the acquisition of a majority stake in Spanish mobile operator Yoigo from Telia. Telia sold its 76.6% stake in the operator to Spanish alternative mobile player MásMóvil instead, for €479 million, leaving the Asturias-based cable operator out in the cold after a period when it had been in exclusive negotiations to acquire Yoigo expired.

The latest deal, while falling short of creating a national provider of converged services, will help the operator generate mobile growth, according to Zegona, which has set increasing mobile penetration as core component of its strategy for the company.

“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,” said Eamonn O’Hare, CEO and chairman, Zegona Communications.