Telefónica attracts broadband clients but struggles in mobile

16 January 2013 | Kavit Majithia


Telefónica has attracted 45,000 new broadband clients during November in its home market but struggled in mobile after losing up to a quarter of a million customers.

The company introduced a bundled internet, phone and TV package in October to curb slowing growth. It has lost over a quarter of a million mobile customers after the company stopped subsidising smartphones in March.

Spanish telecoms regulators indicated Telef√≥nica had gained more broadband customers than all its competitors together, with cable operators adding 6,000 clients and other operators gaining a total of 36,000.

In the mobile market, Vodafone also lost a large number of clients in November, with data indicating the company lost 287,000, taking the lead from Telefonica.

Low cost operators, including TeliaSonera's Yoigo and other virtual mobile operators have been benefitting from the continuing price war, and operate under the premise of renting capacity from larger established operators.

According to Reuters, virtual mobile operators account for over 6% of the Spanish mobile market.