The Orange and MásMóvil merger is set to bring job cuts and the elimination of smaller and low-cost brands.

The companies combined manage up to 13 commercial brands, servicing some 30 million lines, both fixed broadband (over 7 million) and mobile (20.2 million) and pay-TV (1.5 million subs). The merger will bring a brand and service rationalisation affecting thousands of customers who will have to change to another brand or a new tariff plan.

Orange has three brands: Orange for premium customers; Jazztel for medium income customers; and Symio for low cost customers. MásMóvil has several different brands: MásMóvil, Yoigo, Pepephone, Virgin, Lebara, Llamaya, Lycamobile, Euskaltel, R, Telecable and Guu. Many of these brands will inevitably disappear.

Orange will also try to attract MásMóvil subscribers to its pay-TV service by offering them all La Liga matches, with new packages to be launched.

Finally, the merger will have an impact on the 5,000 staff both companies employ with estimates of up to 1,000 possible job cuts.

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Categories: Articles, Business, M&A

Tags: euskaltel, Jazztel, MásMóvil, Orange, spain