MásOrange is born, a group that includes Orange and MásMóvil, which will continue to be multi-brand

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 combining the names of the two telcos. The new group becomes the main agglutinator of telephone services in Spain and one of the twenty largest companies in the country with revenues of approximately 7.4 billion euros per year. He estimates that the synergies of the union will bring him another 500 million annually.

The merger is more corporate than commercial in nature. Many of the brands owned by the group, such as Orange and MásMóvil, as well as Jazztel, Yoigo, PepePhone and Euskaltel will continue to maintain their identities. “We want to continue this multi-brand strategy and we believe it allows us to offer our services optimally,” said Meinrad Spenger, founder of MásMóvil and the new CEO of the new telecommunications group, in a press conference.

In total, the 14 brands included in MásOrange (nine national and five regional) have a market share of 42% of the mobile line market and 41% of the fixed line market. Spenger reiterated that interest rates for its current customers will also be maintained and that the merger will have little impact on their business development, apart from saving “overhead costs”.

MásOrange also committed to honoring the 1,500 physical stores it has since the merger. “Nobody has more brick-and-mortar stores than us, and it’s going to be a very solid bet,” he said. It is also the leader in the entire mobile device sales market, with 4.2 million per year, which represents more than 1,000 million euros in revenue on its accounts.

The group committed this Wednesday to investing around 4,000 million euros over the next three years, particularly in the deployment of 5G and fiber networks and 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 a plan for forced exit of personnel. Involuntary, compulsory departure. Our spirit is that anyone who wants to participate can do so,” he said, opening the door to other avenues such as early retirement plans or encouraged retirement “always within social dialogue.”

growth

The new group is going to increase revenue and not just rely on telecommunications. On the one hand, MásOrange intends to take advantage of its new corporate identity and its position as a giant in the Spanish market to increase its business in the segment of services for companies and public administrations.

On the other hand, the group now defines itself as a “service company”. This category includes the aforementioned sales of devices, but he intends to believe in the category of financial services (promotion of Orange Bank), insurance (related to the protection of mobile phones such as screen breakage insurance), alarm and security, energy distribution or telemedicine.

Another point that Spenger emphasized is the new corporation’s ability to have more influence on the technology sector. This is what all major European telecommunications companies are striving for and a line that MásOrange will try to follow based on technological innovation agreements with technology sector leaders and the inclusion of artificial intelligence “to improve customer experience and productivity”.

Source: El Diario

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