Orange's Spanish unit cuts broadband tariffs as competition heats up

by Reuters
Tuesday, 22 April 2014 09:24 GMT

MADRID, April 22 (Reuters) - The Spanish division of French telecoms group Orange said it would cut broadband tariffs 45 percent to 16.95 euros ($23.40) per month from Tuesday, potentially reigniting a price war for fast Internet access.

The move comes amid increased merger activity in the telecoms sector, following years of falling company revenues and price wars to retain cash-strapped customers during an economic squeeze. Industry sources say Orange, the third-largest operator in Spain, may be interested in buying Jazztel.

Vodafone, the largest operator in Spain after Telefonica, earlier this year agreed to buy local cable company Ono, upping the heat on Orange to increase market share in Spain. ($1 = 0.7244 euros) (Reporting By Elisabeth O'Leary; Editing by Paul Day and Susan Fenton)

Our Standards: The Thomson Reuters Trust Principles.