France Telecom acquires Simyo
France Telecom-owned Orange Spain has acquired MVNO Simyo from Dutch operator KPN for approximately $40 million.
Orange Spain will run the MVNO under the Simyo brand and has said it will not make any changes to tariff or service conditions.
KPN put the company up for sale in July 2012, and it had also received offers from UK-based operator Vodafone for the MVNO. The move marks KPN’s exit from the Spanish market.
France Telecom has recently embarked on a strategy to enter into weaker markets, after facing increasing competition in its domestic domain. The company lost market share and recorded lower margins and profitability last year.
Reports suggest France Telecom could also bid for Yoigo, another Spanish MVNO which is owned by TeliaSonera.
The French operator has 12.2 million units in Spain and adds 380,000 customers from Simyo.