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New Sogecable's preference for Orange?
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New Sogecable's preference for Orange? - 11-August-2008, 14:50

Sogecable's preference for Orange?

When Telefnica was one of Sogecable's shareholders, its combined offering Tro+ was one of the company's kings. But now with Telefnica out of Sogecable's shareholding structure, its joint offering with Orange, Yacom+, has taken on that mantle.
Thanks to the Tro+ product, Telefnica offered television to those clients whom its DSL operator could not reach due to technical reasons. At the same time Sogecable could add internet and traditional telephony to its product line.

But over the last few months Yacom+ has been selling far better than the Telefonica service, which is failing to reach 2,000 new monthly clients. Moreover Orange and Sogecable have just launched a new summer promotion giving free television for two months and 16 soccer matches of the Spanish Football League in pay-per-view - one per match day until the end of the year.

Sogecable has already confirmed that it has no plans to launch similar offers for Tro+ in the near future. The offering with Orange is also much better in terms of broadband speed and price than that of Telefnica.

For Orange these promotions mean to add value to its television products under the Yacom brand. But for Telefnica it only means a complementary strategy to its king product Imagenio.

Orange has another agreement with Sogecable because it also offers content from Sogecable's satellite pay TV operator Digital+ on its mobile offering with more services than that of Telefnica's mobile operator Vodafone.

But is this progressive strategy of Orange towards Sogecable a strategy for buying out Digital+? Or is it just a strategy of Sogecable to put pressure on Telefnica to force the telco to make a final decision on whether it wants to buy the platform?

Sogecable is asking for Digital+ a much higher price than Telefnica is willing to pay, so the conversations between the companies are at a stand point.
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