Telefonica this year is the one that is leading the broadband market in Spain, both technically and commercially. I am not talking about Telefónica because I have any interest but because of the fact that they are the ones that are pushing the market more intensively.
This week, starting 1st September, they released a new service that they call Movistar Fusión, that integrates mobile and fixed services in a quadruple play bundle. Their price strategy is very aggresive, with an flat-rated fee of 49,90EUR for ADSL services and 59,90EUR for FTTH. Imagenio (video streaming and VoD) is charged separatelly. VAT is also not included.
The strategy of Telefónica is to increase their ARPU by integrating mobile services, which may be a clever strategy, as they can offer a global offer at a quite competitive price. Vodafone and Orange are screaming and claiming at CMT to study the offer to confirm that it is under the regulatoty framework that Telefónica needs to fulfil.
In any case, it is interesting the fact that the most active player in the Spanish market is the incumbent. They have at present 95% of FTTH connections and are heavily investing to cover 50% of the Spanish population with FTTH before 2015.
Let’s see how the market accepts this quadruple-play offer and the reactions of the competitors.
More details about Movistar Fusión here.