Telefónica, Megafon target OTT with partnership

Spanish telco Telefónica has signed a strategic partnership with Russian telecoms firm MegaFon, in a move that could see the pair develop new businesses such as OTT.

Under the deal, the companies will make joint equipment purchases, exchange “technological know-how,” and the firms will use each other’s networks to offer business customers services when abroad, Telefónica said.

It added that in the future, the firms said they would also focus on the “rapid development, launch and monetisation of products in adjacent telecom businesses” as well as look to develop new businesses like OTT and cloud services.

The agreement boosts Telefónica’s Partners Programme, which already includes firms like China Unicom and Telecom Italia.