Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: In December 2015, the EC approved the regulator's proposal to open up Telefónica's fibre
network in Spain. Although we welcome this development, we maintain our view that the regulator needs to
strike a balance between encouraging investment in new technologies and ensuring competitive markets as
well as universal coverage. Meanwhile, reports suggest that MásMóvil has overtaken Zegona as the
frontrunner to acquire Yoigo from Telia in the Spanish mobile market. MásMóvil acquiring Yoigo would
confirm our view that a solid fourth player in the Spanish market must be a converged actor.
Latest Updates And Industry Developments
? In March 2016, it was reported that TeliaSonera and Zegona had entered exclusive talks about the sale
of Yoigo in the Spanish market; however, in June reports suggested that MásMóvil has overtaken
Zegona as the frontrunner to acquire Yoigo.
? In December 2015, the European Commission approved the Comisión Nacional de los Mercados y la
Competencia (CNMC)'s proposal to open up Telefónica's fibre network in Spain. Under the regulator's
proposal, Telefónica will be required to share access to its network in all of Spain, except in 34 towns and
cities where superfast internet is already being offered by three or more operators. Telefónica has
threatened to stop the accelerated rollout of its Spanish fibre optic operations if the proposal is approved.
? In 2015 (latest data), fibre-to-the-home (FTTH) connections rose by 155,000, surpassing 3.1mn. Most of
these belong to Movistar. Total broadband lines reached 13.18mn in December 2015, with Vodafone
España gaining a net total of 182,000 lines, Movistar gaining 76,000 and Orange España 1.79mn (a
figure that includes the broadband customers served by JazzTel whose acquisition by Orange was
finalised in late 2014).
? We forecast only gradual growth in the number of mobile subscriptions, which are now expected to reach
51.218mn by 2020. However, 3G and 4G service uptake will be much more vibrant, with 40.615mn 3G/
4G subscriptions by 2020 accounting for 79.3% of the market.