Telefónica Succeeds With Strategy

摘要

Spanish incumbent operator Telefónica reported strong uptakenof its new cut-price converged service package Movistar Fusiónn– reaching 1mn subscriptions after its October 1 2012 launch.nThe Movistar Fusión bundle offers fixed-voice, fixed and mobilenbroadband, mobile telephony and pay-TV in a single product,nsignificantly undercutting other converged service packages. BMInbelieves Telefónica will experience continued success in terms ofnsubscription acquisitions from the cut in prices, reversing the recentnloss of market share as its pricing better reflects the economic realitynin Spain. However, the price cuts will reinforce the dynamicnof downward pressure on prices that is squeezing all operators innSpanish telecoms.