Telefónica reinforces O2’s commitment and brings its new rates to Movistar stores | Companies

Telefónica wants to accelerate the growth of the O2 brand, within its new impulse in the segment of low cost in the Spanish market. The company seeks to take advantage of its implementation, to find more ways to reach the customer. In this way, the operator will begin to market the new O2 products in Movistar’s own stores, especially the fixed-mobile convergent rate of 30 euros per month. The teleco thus strengthens O2’s marketing channels, which until now were largely focused on digital channels.

As an initial step in this renewal, Telefónica España is going to carry out a pilot test for the commercialization of new O2 telephony products, in 293 stores of Telyco, a subsidiary of the operator in this commercial segment. With this plan, which is imminent, the company will train its employees on these new O2 products and services.

This movement comes just a few weeks after Telefónica Spain’s decision to launch the aforementioned convergent O2 rate of 30 euros per month. This commercial offer also came after the decision of the National Markets and Competition Commission (CNMC) to increase the municipalities free of fiber optic regulation for the former incumbent. As indicated by Telefónica, this change allowed all customers in these municipalities to equal the conditions with those of other localities that were already liberalized.

Within this pilot test, some stores will market the new O2 rate of 30 euros per month, and others the aforementioned rate and another of 38 euros per month.


In addition to the commercial impulse of the new convergent rates, Telefónica Spain will analyze the evolution of the coexistence of the two brands in its stores. After the pilot test, the operator will decide how it establishes the final commercialization of the two brands, and if it is extended to the more than 1,000 points of sale of the company.

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In any case, when selling products and services of the two brands, the stores will receive different types of customers. In addition, they could be helped by an increase in commercial activity and the consequent sales to customers. In short, facilitate the arrival of clients from other competing companies, and thus find new spaces for growth.

And it is that, with this renewed offensive in the low cost, the telecom company directed by Emilio Gayo sought to face pressure from competitors such as Digi, Finetwork, MásMóvil, Vodafone with Lowi and Orange with Simyo. Telefónica has been penalized by the loss of lines, both fixed and mobile, in the portability segment over the last few quarters. Thus, Telefónica Spain closed the month of September with 40.48 million accesses, 2.7% less year-on-year.

In addition, with the aforementioned analysis of the coexistence of the Movistar and O2 brands in Telyco stores, the company wants to review the commercial activity as a whole, and avoid the cannibalization of Movistar customers, who generally pay a price above O2 rates. Should this occur, the company would be at risk of having a revenue impact.

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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