Spain’s Telecable in running to buy mobile operator Yoigo

Telecable, the Spanish regional cable operator owned by UK-based investment outfit Zegona Communications, is making a €380 million bid for Spain’s fourth-ranked mobile player Yoigo, according to local press.

According to digital news service Hispanidad, Telecable, which operates in the Asturias region of north-western Spain, is in competition with Warburg Pincus, mobile virtual network operator Másmóvil and Spanish telecoms entrepreneur and former Telefónica president Juan Villalonga for TeliaSonera-owned Yoigo.

TeliaSonera, which holds a 77% stake in Yoigo, rejected a €1 billion offer from Orange a year ago, but Yoigo has now been on the block for a number of months without a deal being struck.

Telecable has a 13% share of the mobile market in Asturias through its existing MVNO agreement with Vodafone, making it the number four mobile player in the local region. The company recently revamped its mobile offering. The company owns a 2.6GHz spectrum licence for which it has yet to outline any concrete plans.

A recent Moody’s report noted that the company’s MVNO-based mobile strategy faced a number of long-term challenges, including that of integrating its Wifisfera public WiFi hotspot network with its MVNO network.

The acquisition of Yoigo, a national player would give it a much wider presence across Spain outside of its relatively small regional market.