Movistar Returns to See How Their Revenue Grow Seven Years Later, Thanks to Fusion

The crisis and the emergence and growth of new entrants in the telecommunications sector they have done much damage to large operators. Is no longer only the flight of customers there has been virtual operators, also have seen decrease their income because of applications like WhatsApp.

And to stop that bleeding Movistar made a very intelligent in 2012 move, launch Fusion. Its fixed network is much greater than that of its rivals and offer a comprehensive product also makes loyal customers. With this and opted for the fiber and pay television Movistar has today presented accounts that their income grow year on year for the first time since 2008.

Movistar strategy seems to work. As much as to endeavor to package television in their merger, making its convergent product offer more expensive than the other operators, or even if its price climb in five euros in the first half of the year, the operator has managed to traced the fall of income in recent years.

Revenues, which have grown a 0.2% year on year, accompanied by the success of Fusion. At end of the last quarter Movistar had four million converging customers, in addition to the 1.5 million additional mobile lines, which represents a growth of 14% and 9% respectively. Customers of Fusion 28% have a fiber of 100 or 300 megs and 58% connection pay TV.

More fixed, less mobile access

Shelling, Movistar saw as its customers with fixed connection plant grew 45,000 accesses in the quarter, to reach 5.9 million accesses. Those connections two million already are fiber, after growing these in 230,000 in the last three months. Have also grown strongly pay-TV customers, 275,000 more in a quarter with Canal + already integrated, amounting to a total of 2.5 million.

Where Movistar not stops too is on your phone, since it is the segment where lost customers. the operator has 17.3 million mobile lines, 3 percent less than last year, but also the last data portability we’re seeing a tendency to abandon the losses, we’ll see if it is confirmed in the October data. Nor give much details 4 g, only mentioning that they already have three million customers who use it.

A future marked by the fiber and pay TV

With these results and the campaign of Christmas already near, we have to think in What can be the future evolution of Movistar. His lunar is not having major European competitions of football in its television offering, if Orange and Vodafone have them, but nevertheless seems that the effect of this absence is not worrying for operator.

But soon, before the end of the year, will be awarded the rights of the Spanish League for the next three years, bid which seems that the only rival of Movistar will be Mediapro, precisely the owner of rights of the Champions League. The operator will have to take rest in this bid if you don’t want to make the Catalan company run with rights, depriving of a content relevant to the tele of Movistar If subsequently do not reach an agreement.

Movistar could resort to television that manufactured with Vestel to attract customers in the Christmas period

The other point where will continue fighting Movistar is fiber. Currently it already reaches 13.4 million households, nearly the number of households that are arriving Orange in 2020, but on deployment it looms the threat of regulation having slope of posting the CNMC.

This, mixed with a period in which many users tend to change operator looking for mobile free (or at least cheap) can affect the course of Movistar, now well under way. Do it will be television with Vestel manufactured his gun (no longer) secret for Christmas? We’ll see soon.