Telefonica must want to get into further trouble with the European Commission, not content that it is about to be fined for artificially hiking DSL wholesale prices in Spain, now it wants to collaborate with its biggest pay TV rival, a move that would share out TV services in Spain and eliminate active competition. Once the European Commission gets to thinking about this latest move, it could potentially block it.
The deal is announced with Sogecable, which owns 23 TV channels, and distribute them over its captive Digital+ satellite service as well as getting them included for distribution on cable and ADSL.
By putting these channels side by side in a single service branded as Trio+, Telefonica will effectively sell its Imagenio IPTV as part of a single offering with Sogecable.
The new service will even go so far as buying content collectively, initially within Spain, but we must assume overseas content also. Trio+ will be available by the end of November in time for a Christmas push.
The only way in which the two TV efforts will remain separated is because each company will continue to invoice its respective customers and customer care will continue to come from their corresponding centers.
But between them both Telefonica and Sogecable will each be able to offer Triple Play services, with Sogecable offering ADSL television, internet access and voice, and Telefonica being able to sell satellite TV on top of its IPTV offering. The agreement will last for four years
Meanwhile the Spanish Telecommunications Market Commission (CMT) is said to be lobbying aggressively to stop the EC imposing a €100 million ($136 million) fine on Telefonica later this week for charging excess fees for wholesale ADSL.