Telefonica launches O2 brand in Spain

Telefonica has unveiled its new O2 brand in Spain, targeting the country’s low-cost segment and above all rival Masmovil with a simple mobile only and convergent (fibre plus mobile) offering. The mobile plan comes with 20GB of data plus unlimited national calls and SMS for EUR 20 a month while the convergent offer includes the same mobile service plus symmetric fibre broadband at 100Mbps and a landline with unlimited national calls for EUR 45 a month. Customers can also include up to three additional mobile lines with 10GB of data, unlimited calls and SMS for EUR 15 each. The O2 service will be activated in “beta mode” in the coming days ahead of a mass market launch “after the summer”, said Telefonica.

However, in a move apparently aimed at reigniting a longstanding row with Spain’s communications regulator CNMC, Telefonica said the prices will only be applicable in the 66 cities deemed “competitive” by the watchdog in its 2016 wholesale fixed broadband regulations. Under those rules, Telefonica is obliged to provide virtual access to its fibre network throughout Spain except in those 66 municipalities considered more competitive. “It is worth noting that the original list is two years old and there are almost 250 municipalities that today would fall within the category of a competitive area,” said Telefonica in its statement.

For the cities not listed as competitive by the CNMC, the O2 convergent offer will be EUR 58 a month but Telefonica said it will implement a system to compensate customers for the EUR 13 a month price difference and adjust the price accordingly as soon as the city becomes a competitive area.

O2’s offer was presented by Telefonica Spain Director of Multi-Brand strategy Pedro Serrahima, the newly-recruited founder and former CEO of Spanish MVNO Pepephone, confirming recent reports, with Telefonica keen to stress that O2 will be a “premium” service while its youth-oriented Tuenti brand will be maintained as a low-cost alternative. – Telecompaper