HE british past Zegona announced this Tuesday that it has acquired Vodafone Spain for 5 billion euros. The operation is expected to be completed on this date The first quarter of 2024, After obtaining permission from the Government under the Foreign Investment Law. Vodafone third telecommunications operator total in spain 11.4 million mobile customersThere are 3 million broadband customers and 1.5 million television customers.
1. What about the Vodafone brand?
The Vodafone brand will not change. The British fund reached an agreement with Vodafone to protect the brand for “a maximum of 10 years”. “Vodafone will also be there” Spanish market always. So far the Vodafone group has been in charge, and Zegona will be its guardian for the next few years. 3, 5, 7 or 10 years”, Zegona’s CEO explained: Eamonn O’Hare at a press conference. The company’s aim is not to replace the ‘premium’ Vodafone brand or the low-cost ‘Lowi’ brand, but to improve the company’s current performance.
2.Will there be any changes then?
With no further details known, here’s Zegona’s progress following the acquisition announcement: Vodafone Spain There are two Achilles heels that are a priori most susceptible to change: one lowi and else wholesale services. But for the better. In the first case Zegona wants to strengthen Lowi to become rival director of DigiVodafone’s cheap brand, which currently has 5.7 million customers, has approximately 1.5 million customers. The way to do this is to value it. Like? With offers from the Romanian company that include more benefits, e.g. 5G coverage offers –Unlike Digi, Lowi is currently selling but according to O’Hare it hasn’t been selling for a long time– or television content.
3. Will prices increase?
It is difficult to know the company’s plans in terms of price, especially in the current inflation environment. Zegona primarily aims to generate more revenue from the growth of its business, making it more competitive but also more efficient, meaning it gets rid of things that slow down growth. The person who aspires to be your CEO, José Miguel GarciaHe was the company’s top executive until two years ago. Euskaltel and Virgin Telcowhere was he betting à la carte offer in terms of services but at ‘low cost’ prices. “Why did ‘low cost’ products appear? After years of rigid packaging, the body wanted ‘low cost’, but many of them appeared and we lost the quality-price effect. There is a gap that we have come to fill, and others will copy us…”, Euskaltel in 2020 As CEO of , he said in an interview with Prensa Ibérica’s El Periódico de Cataluña.
4. What about at the wholesale level?
At the wholesale level the plan calls for greater emphasis on this business, i.e. more revenue from networks. “The Spanish market is very dynamic We believe Vodafone’s business can compete more dynamically in this segment. Vodafone is agreat network but don’t optimize it because it only uses 20%. It’s like a airline and only uses 20% of seats or manage Hotel with 20% occupancy rate“Not wanting to explain what the way to do this would be, O’Hare explained. “We have to find a way to optimize this. “There are many ways, we don’t have a specific plan to explain today, but there are many options to make it more valuable, to optimize it, to attract more traffic, to be more dynamic,” he said.