Spain’s four largest cable operators - Ono, Euskaltel, R and Telecable - are in talks to join forces in order to bid for mobile spectrum in the country’s upcoming 2.6GHz auctions. One of the cable operators' CEO's told Spanish newspaper Expansion that the Spanish authorities are in favour of the cable companies jointly bidding for spectrum in the auctions, which are scheduled for the first quarter of next year. The spectrum is to be partly allocated on a regional basis to facilitate cable operators applying. The move would mark a significant shift in strategy for the cable firms, which have traditionally offered mobile services in Spain via MVNO arrangements. Currently, regional firms Euskaltel, R and Telecable are with Vodafone Spain, while Ono – a national firm – has an MVNO deal in place with Telefonica’s Movistar.
However, the cable companies argue that aggressive retail pricing in the Spanish market has made it hard for them to remain competitive using a wholesale (MVNO) model. According to Expansion, the cable companies have already been in talks with Yoigo - Spain's smallest mobile operator – over a deal that would have seen the firms contribute to the deployment of Yoigo's network in their regions in return for more attractive wholesale prices from Yoigo. However, the report says that no progress has been made in this area since talks began in September.
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