ONO (Spain)

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Cableuropa Ltd.
Type Subsidiary
Industry Telecommunications
Founded 1993
Headquarters Madrid, Spain
Key people Vittorio Colao (CEO), Eugenio Galdón (Chairman)
Products Broadband Internet access, cable television, telephone
Revenue €1.6 billion (2008)
Operating income €1.1 billion (2006)
Net income €0.7 billion (EBITDA, 2008)
Employees 3,500
Parent Vodafone Group plc
Website www.ono.es

ONO is a Spanish broadband communication and entertainment company, delivering integrated telephone, television and Internet services to its residential customers. In this segment, it has 3.7 million services contracted and over six million users. Recently, it is said that Vodafone placed a bid of 7 billion euros for ONO.

ONO was incorporated in 1998. Before commencing its operations, the company took part in a series of competitive tenders which were called after the coming into force of Spain's General Telecommunications by Cable Act 42/95. From 1996 to 1998, ONO was awarded the licenses to provide cable television and telecommunications services in the regions of Valencia, Castellon, Alicante, Murcia, Cádiz, Huelva, Cantabria, Majorca and Albacete.

As the company rolled out its own latest-generation network across its regions, users started to enjoy its TV, telephone and Internet services. By the end of 2002, ONO was already present in approximately one in every three homes prepared to receive its services. A year later, it was awarded the license to operate in Castile-La Mancha and, in 2004, it acquired the telecommunications operator Retecal, covering Castile and León, Spain’s second largest region by geographical area.

In November 2005, ONO closed the acquisition of 100% of the telecoms company Auna Tlc, thereby consolidating its presence as Spain's leading broadband communications and entertainment company and extending its services to the communities of Aragon, Andalusia (excluding Cadiz and Huelva, which already belonged to ONO), the Canary Islands, Catalonia, La Rioja, Madrid and Navarra.

On 17 March 2014, ONO announced it would be acquired by Vodafone for €7.2 billion (US$10 billion), subject to regulatory approval.[1]

Company background[edit]

According to data from its web page, at the end of First Quarter of 2008, ONO had 1.8 million clients and it has rolled out a next generation network that covers over 6,850,000 homes and business. During the last 12 months, the company has released a total of 414,000 new households, an increase of 6.4% year-over-year.

Services available to clients with cable access as of September 30, 2008 are as follows:

  • Fixed telephony: 1,623,000
  • Internet: 1,272,000
  • Television: 1,057,000

ONO has rolled out its own cable network in Spain. In areas where the operator does not offer its proprietary infrastructure, ONO offers phone and Internet service through ULL technology.

Shareholders' structure[edit]

ONO's main shareholders:

History[edit]

In 1998 ONO was awarded licences to build its own next generation network in 11 Spanish regions.

  • In May 2004, ONO acquired Retecal, a cable operator from Castilla y León. Because of its precarious financial situation, ONO decided to help the company with a 30 million euros cash investment so that It could continue operations.
  • In August 2005, ONO reached an agreement with Grupo Auna shareholders to acquire its telecommunications unit for €2.2 billion. In November 2005, the acquisition was concluded, with the purchase of Auna's cable unit. Soon after ONO started the integration of both companies, creating Spain’s biggest broadband and entertainment alternative operator to former monopoly, Telefónica.

In the wake of the acquisition of Auna, ONO received the support of venture capital firms (JP Morgan Partners, Providence Equity, Thomas H.Lee Company, GE Capital Services Structures Finance Group, Inc., Quadrangle Group).

  • By the end of 2005, ONO started broadcasting the new DTT channels.
  • In 2006, ONO had to set an up a redundancy program, affecting around 1,000 workers.
  • In December 2006, ONO signs an agreement with Telefónica to use its mobile network, thus becoming a mobile virtual network operator (MVNO).
  • At the end of 2007, the company launched "ONO io", a convergent fix-mobile phone service.
  • In 2008, ONO has announced that it is planning to offer broadband access at 100 Mbit/s using "DOCSIS 3.0" technology protocol. ONO has invested over €9 billion to roll out its network.
  • In 2009 ONO has successfully rolled out a 50 Mbit/s connection using DOCSIS 3.0, but only in certain regions of Madrid.

ONO corporate services[edit]

ONO offers communications services for business anywhere in Spain.

ONO's broad range of business services can be best summarized as follows:

  • Telephone services, offering, in addition to basic services (lines, primary services, exchanges and terminals), multiple advanced options. Additionally, with its VoIP services, it seeks to broaden its product range by incorporating multimedia options into everyday communications.[citation needed]
  • High-speed broadband services.
  • Managed services such as security, hosting, online backup, ASP tools and e-learning, amongst others.

ONO residential services[edit]

ONO has provided combined telephone, television and internet services since it commenced operations in 1998. It implements its own latest-generation cable infrastructure, which provides services to more than 1.8 million direct access customers.

ONO has launched ONO io, the first fixed-mobile convergent phone in Spain for all its residential customers. It offers new smart mobile terminals that allow access to both fixed (at home) and mobile (outdoors) networks, but has discontinued making new contracts for the time being.

Internet[edit]

Internet customers can surf the web at speeds of:

  • 20 Mbit/s / 1 Mbit/s
  • 30 Mbit/s / 1 Mbit/s
  • 50 Mbit/s / 5 Mbit/s
  • 100 Mbit/s / 10 Mbit/s
  • 200 Mbit/s / 20 Mbit/s

Television[edit]

Thanks to ONO's technology based on Hybrid Fibre-Coaxial, it's possible to enjoy different contents on different TV sets throughout the home.

ONO also offers OJO, a video on demand (VoD) service, and TiVo, an advanced digital video recorder (DVR) service.

Fixed phone service[edit]

ONO offers an all-included package for fixed line customers, with free domestic calls to all fixed line numbers (up to 60 minutes per call). There is a monthly charge of €15 for the line rental.

Mobile phone service[edit]

The mobile market in Spain is open to all operators since February 2006 through the mechanism of mobile virtual network operators (MVNOs). ONO requested before the CMT (Spanish regulator) a license to operate as an MVNO and signed an agreement with Telefónica to use its mobile network, becoming the fourth operator with a quadruple play offer in Spain: fixed phone, mobile phone, Internet and TV. Other quadruple play operators include Telefónica, Orange and Euskaltel.

Main competitors[edit]

Fixed telephony and broadband access:

In paid-TV services:

References[edit]

  1. ^ "Vodafone to buy Spain's Ono in 7.2bn euro deal". BBC News. 2014-03-17. Retrieved 2014-03-17. 

External links[edit]