Telefónica appears to be regarding the proposed merger of Orange Spain with the country’s fourth MNO, Grupo MÁSMÓVIL, with mixed feelings. On one hand, if regulators approve the deal, it will provide a strengthened competitor for the Spanish incumbent. But on the other, it may release Telefónica from some of the obligations that come from being the dominant player. Even without restructuring of the market in Spain, Telefónica faces plenty of challenges in its home country. It has been focusing its consumer market efforts heavily on convergence, with various fixed/mobile and multiplay services, but growth in these areas has come to a half in recent quarters, and the number of converged customers the incumbent has in Spain fell from 4.82m…