Tuesday, July 24, 2018

Telecom prevails in convergence and it will be difficult to reverse the situation in the short term

Telefónica announced yesterday that it will take legal actions at national and international levels following the decision of the Comisión Nacional de Defensa de la Competencia (CNDC) (National Commission for Defense of Competition) in favor of Cablevisión-Telecom merger. The reaction of the company is measured in the tone shown in the announcement of the mega-merger which is an accomplished fact and that was consolidated throughout a year, pending a result that was a foregone conclusion.

At the highest levels of politics, the mega-merger is approved and, apparently, the asymmetries are not a concern. The stopgap measures promised by the Government are delayed and everything leads to believe that they will remain in the limbo. The steps taken by Mariano Rajoy when he was closer to his home than to the presidency of the Government of his country, came to nothing after Pedro Sánchez Pérez-Castejón, of the Socialist Party, took office, beyond the fact that Telefónica-Movistar is a historical heritage of the Iberian country.

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