BREAKING NEWS

BREAKING NEWS

New player enters Spanish mobile market

Now Reading:

New player enters Spanish mobile market

Text size Aa Aa

Spain’s telecoms operators are about to get a shock in their relatively uncrowded market with a fierce challenger; Yoigo, owned by Nordic operator TeliaSonera. Yoigo is a low cost mobile service, entering a mature market witha single rate per call, per minute, and 20 to 50 percent cheaper than rivals.

It will be Spain’s fourth independent operator, and expects to break even in five years on top of a one billion euro investment. Clawing market share away from the big boys will be tough. A modest one percent is hoped for by the end of next year, with 10 percent forecast for 2015.

Telefonica Movistar will be the toughest nut to crack but consumers may appreciate Yoigo’s commitment to simple-to-use handsets, and pricing policy. Until now Spain’s telecoms market had been rather cosy for the big three. They may find it hard to keep things going all their own way from now on.