Orange and MásMóvil finally close their agreement with Digi. The agreement reflects the remedies or conditions linked to the consequences for competition that the future merger between the first two groups will have.
In April, the European Commission initiated a second evaluation phase to put on the table the conditions necessary to avoid the reduction of the minority offer in Spain. The main beneficiary would be Digi, which since October had the Commission’s backing to take over the merger remedies.
The pre-agreement between MásMóvil and Orange to create the Joint Venture put on the table what conditions would be imposed to avoid possible price increases and poorer quality services due to a reduction in competition in the sector. Digi was the name that most sounded to take over these remedies, the Romanian operator itself confirming in a statement the concessions that the two giants will have to implement.
The three players have reached a final agreement in which two types of conditions are imposed. The first aspect includes a wholesale pact so that Digi can use Orange’s mobile network under preferential conditions.
The second relates to the acquisition of radio frequencies by Digi, from which Orange and MásMóvil must divest themselves. The latter is due to the fact that, after the merger, both will act as a single operator, and the number of radio frequencies of both operators separately exceeds the maximum limit for an operator.
Digi will purchase 60 MHz in the 3.5 GHz, 2,100 MHz and 1,800 MHz bands, 20 MHz in each of these three bands. Digi currently uses Movistar’s network, but these remedies do not oblige it to transfer its users to Orange’s network. The operator can decide whether or not to execute this agreement with the network frequencies, and these will not arrive effectively until September 2025.
The question remains as to what will happen to Digi’s network after this date, with industry sources suggesting that it is more likely to renegotiate agreements with its main suppliers rather than rebuild from scratch with new towers and radio equipment.