The possible purchase of PepePhone by Másmovil reduces competition in the market

Recent reports in the media during the news today seem to indicate that the company will eventually be Másmovil is done with mobile operator Pepephone. If confirmed this fact would be bad news for Spanish consumers and for the telecommunications market in Spain, already fairly concentrated.

Pepephone has been for several years one of the main driving forces in the mobile phone sector, first through an aggressive pricing policy and a very good customer service policy recognized by its customers. With these two principles it has become an important gap in the field of mobile virtual network operators, reaching half a million customers.

For OCU the acquisition by Másmovil eliminate another "new" operator, reducing further the choice of consumers who face a market increasingly concentrated with only 3 or 4 large Business. The disappearance of PepePhone is added to recent ONO and Jazztel. For OCU effects for consumers of this concentration process are clear and have resulted in continuous and aligned rate increases carried out by the three major operators in recent months (Movistar, Vodafone and Orange).

In the opinion of OCU, this acquisition will allow Másmovil get a large volume of customers. Másmovil, which will soon offer its own service ADSL and fiber after buying part of the network of Jazztel, could be closer to the goal of becoming the fourth telecommunications operator in Spain.

This process is completed if finally acquires Yoigo that would give access to its own mobile phone network.

From the practical point of view this acquisition leaves many questions for customers who have suffered Pepephone recent migration to the Movistar network as Másmovil currently works with mobile network Orange and Vodafone for ADSL service. OCU requests that, if carried out this acquisition, Pepephone current customers are not disadvantaged in the quality of service they receive during the transition to new networks and integration with Másmovil is completed.