Euskaltel unveils national expansion plan

Regional Spanish cable operator Euskaltel has unveiled more details of its plan to expand outside its core region and ultimately establish itself as a national player.

Francisco Arteche

Euskaltel will use the R brand of its Galician network as well as the Euskaltel brand to expand into new regional markets, with a target of reaching over one million homes across a number of regional markets this year.

The company said it also plans to form strategic alliances with the key players in the market with a view to ultimately reaching 10 million homes across the country through a partnership with Orange that will allow it to use the latter’s network to increase its reach. Euskaltel has set a target of capturing 90,000 new customers over the next four financial years as a result of the current expansion plan.

Euskaltel will use the R brand in the León and Cantabria regions and the Euskaltel brand in Navarre, where it has already established a limited presence, and neighbouring La Rioja. The one million target also includes Catalonia, where Euskaltel is establishing a JV with automobile club RACC under the RACCtel+ brand.

The company’s services are currently available to around 150,000 homes in Navarre over the Orange network. Euskaltel said that it had achieved a penetration rate of 8.2% from this footprint, which it aimed to grow to 20% by 2022.

The operator has targeted 200,000 homes in León and Cantabria, again using Orange’s network. Here is foresees a penetration rate of between 4% and 6% this year, growing to 12% by 2022. In La Rioja, the other market that is geographically close to its northern Spanish stronghold, the group hopes to reach 85,000 homes.

Euskaltel said it aimed to reach up to 600,000 homes in Catalonia through its partnership with RACC. Euskaltel predicts that these new markets will account for a relatively modest 8% of its revenues by 2022.

“Aware of our strength as the leading operator in the markets where we operate, Euskaltel Group considers extending into new markets as a natural step in our project of establishing ourselves as one of the principal Spanish operators, always putting our customers at the centre of the business,” said Francisco Arteche, Euskaltel CEO.

“The company has always taken as its mission to offer its clients the best quality at the best price. Our goal is to continue offering the best telecom experience and to remain at the forefront of innovation and digital transformation, furthermore being the main partner in accompanying enterprises, institutions and individuals in meeting the technological challenges facing them.”