It will be called MásOrange and will have the +O logo. Orange and MásMóvil presented this Wednesday the new corporate identity resulting from their merger, formed by the union of the names of the two telecos. The new group becomes the main agglutinator of telephone services in Spain and one of the twenty largest companies in the country by revenue, with around 7.4 billion euros per year. He estimates that the synergies of the union will bring him another 500 million annually.
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The merger has a more corporate than commercial character. The multiple brands owned by the group, both Orange and MásMóvil, as well as Jazztel, Yoigo, PepePhone and Euskaltel will continue to maintain their identity. “We want to continue with this multi-brand strategy and we believe that it allows us to offer our services optimally,” Meinrad Spenger, founder of MásMóvil and new CEO of the new telecommunications group, announced at a press conference.
In total, the 14 brands included in MásOrange (nine national and five regional) have a market share of 42% of the market in mobile lines and 41% in fixed lines. Spenger has reiterated that the rate prices of its current clients will also be maintained and that the merger will have little impact on how they develop their business, beyond saving “superfluous costs.”
MásOrange has also committed to respecting the 1,500 physical stores it has following the merger. “No one has more physical stores than us and it will continue to be a very firm bet,” he said. It is also the leader in the entire mobile device sales market, with 4.2 million a year, which represents income of more than 1,000 million euros to its accounts.
The group has committed this Wednesday to “make investments of around 4,000 million euros in the next three years, especially in 5G and fiber deployments and in new services.”
The merger of the two companies adds 8,500 employees. Spenger assures that there will be no layoffs. “It is a sensitive topic. We do not have any forced personnel exit plan planned. Of involuntary, mandatory departures. Our spirit is that everyone who wants to participate can do so,” he said, opening the door to other avenues such as early retirement plans or incentivized exits, “always within social dialogue.”
Growth
The new group intends to increase its income and do so by relying not only on telecommunications services. On the one hand, MásOrange intends to take advantage of its new corporate identity and its position as the giant of the Spanish market to increase its business in the segment of services to companies and public administrations.
On the other hand, the group now defines itself as a “services company.” In this category it includes the aforementioned sale of devices, but it intends to believe in the category of financial services (promoting the Orange Bank), insurance (related to the protection of mobile phones, such as screen breakage insurance), alarms and security, energy distribution or telemedicine.
Another point that Spenger has emphasized is the ability of the new corporation to have a greater impact on the technology sector. It is something that all the large European telecom companies are trying and a line that MásOrange will try to follow based on technological innovation agreements with the leaders of the technology sector and incorporating artificial intelligence “to improve customer experience and productivity.”
