In what will be seen as an ambitious move, or one designed to make it an attractive takeover target, Spanish regional broadband services firm Euskaltel has announced plans to offer its services to more than 1 million additional homes in five new markets and, ultimately, says it could expand to reach 10 million homes across the Iberian country.
Euskaltel is a small player in the scheme of things, operating mainly in the northern Basque region of Spain, where it has about 570,000 residential broadband customers and passes about 2.3 million homes. National operator Telefónica, meanwhile, passes more than 19 million homes with its fiber access network and has more than 6 million fixed broadband customers.
Euskaltel's annual revenues run rate is currently about €700 million (from all of its services) but it turns a small net profit each quarter.
Now it wants to be bigger -- much bigger -- and notes that it could pass 10 million homes in the future, thanks mainly to its agreement to access the fiber network being rolled out by
Orange Spain , which also provides Euskaltel with wholesale mobile network services.
Its initial plan is to reach more than 1 million additional homes this year in five markets: In León and Cantabria through its R brand, using Orange Spain's fiber access network (200,000 homes); in Navarra and La Rioja with the Euskaltel brand (235,000 homes); and in Catalonia through the recently announced RACCtel+ joint venture with automobile club RACC (600,000 homes).
"We consider the expansion to new markets as a natural step in our consolidation project as one of the main Spanish operators, always placing our clients at the center of the business," noted CEO of the Euskaltel Group, Francisco Arteche, in the company's announcement about its expansion plans.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.