Telefónica lowers Spanish tariffs to remain competitive

Telefónica is pushing to gain ground on competitors in Spain by launching a set of radical new airtime and data tariffs for consumers.

The four new Telefónica tariffs will be available from Oct. 1 with prices starting at €11 per month. The tariffs aim to provide users with more data at a lower cost, access to the operator's 4G network, and competitive minute bundles for calls.

Live 11 costs €11 and gives users national calls for €18.15 cents regardless of call length, as well as 88 MB of data. Customers of Movistar Fusion can use this rate as an additional line, the company said.  Live 22 costs €22 per month and provides a bundle of 200 minutes for national calls plus 1.1 GB per month. Live 30 provides voice calls and unlimited SMS, plus 2 GB data per month for €30, and Live 43 includes unlimited voice calls , unlimited SMS and 4GB of navigation. It is also a multi SIM service, so the user can chat or surf on up to four devices simultaneously without having to switch the SIM card between them.

The mobile operator is feeling the pressure since Orange made a bid for Spanish telecoms player, Jazztel, on Sept. 16, and Vodafone completed its deal to acquire Spanish comms business Ono in July.

Consolidation of the Spanish telecoms market has been increasing over 2014 and large operators are moving in quickly on Telefonica's home ground. Vodafone Group completed its acquisition of 100 per cent of the share capital of Grupo Corporativo Ono earlier this year for €7.2 billion ($9.1 billion) on a debt and cash free basis. The transaction has accelerated Vodafone's unified communications strategy in a key, highly converged, European market.

Meanwhile, Orange announced earlier this month that it has launched a friendly voluntary cash tender offer for the acquisition of 100 per cent of the capital of Jazztel. If the deal goes through, Orange will create the second biggest fixed-line broadband operator and a strong player in the mobile segment in Spain, so accelerating the movement of its customers towards convergent offers as Jazztel is a strong competitor in the triple play and mobile services segments. This operation will generate estimated global synergies for the combined entity of up to €1.3 billion.

For more:
- see this Vodafone release
- see this Orange release
- see this Cinco Dias story

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