The telecom business woke up on Tuesday to two major pieces of news that will undoubtedly shape the future of the sector in the coming years. The first is the possibility of the state breaking into Telefonica via Sepi to tie up the Saudis. The second significant event is the sale of Vodafone Spain to Zegona.

The investment fund announced it would pay 5 billion euros for the entire business in Spain and take control of the subsidiary in the coming months. As is usually the case in such cases, such agreements are subject to regulatory approval and, in addition, The government will have to agree to this operation because it is a strategic sector in our country. However, Zegona assured that they do not foresee any serious problems.

Vodafone is the third player in Spain, with a significant market share in mobile communications, broadband and television. At the end of June 2023, Vodafone in Spain had 13.5 million mobile customers (down 86,000) and 2.8 million broadband customers (down 65,000). The television subscriber base fell by 33,000 to 1.4 million. However, the operator’s portfolio has been shrinking for a long time due to fierce competition within the sector itself, with several low-cost airlines offering customers almost irresistible prices.

Ten years in Spain

However, millions of Vodafone users can rest assured that this will not mean any significant changes. Zegona confirmed this. will retain all clients and users in your portfolio. In turn, the investment fund secured brand Vodafone Spain over the next ten years, so there will be no need to change its name.

Vodafone and Zegona have signed an agreement under which Vodafone will provide certain services to Vodafone Spain for a total annual value of approximately 110 million euros, the operator said in a statement.

Margherita Della Valle, CEO of Vodafone, said: “The sale of Vodafone Spain is a key step in sizing our portfolio for growth and will allow us to focus our resources on markets with strong structures and sufficient local scale. I would like to thank our entire team in Spain for their dedication to our customers and their tireless determination to improve our organic performance. However, the market faces challenges related to structurally low yields.”