The Euskaltel Group is to merge Telecable and R into a single company
Bilbao, 14 March 2019. The Euskaltel Group is pressing on with its plan to unify the company's processes in the interests of improving customer service. The Group?s Board of Directors has decided to reorganise the business by merging Telecable, its brand in Asturias and R, its brand in Galicia. The new R and Telecable resulting from the merger will enhance the Group's future competitiveness thanks to the joining of forces of both brands and growth potential through the integration of the two markets.
The operation will allow the Euskaltel Group to unify work processes and maximise synergies in the same company, as well as exploit both brands in their original and expansion markets with increased financial flexibility and clear room for growth. The Group will therefore further deepen the roots and commitment of both R and Telecable in their respective markets and recognition in each region.
Francisco Arteche, the Euskaltel Group's CEO, comments: "This decision relates mainly to the unification process affecting the way the Euskaltel Group works, as part of the company?s transformation and simplification plan announced in January. Our goal is to continuously improve all our processes and activities so as to benefit our customers, employees and shareholders".
The Euskaltel Group's current geographic expansion plan is also critical to the decision taken. This plan, which is being deployed in a number of geographic zones through the R brand, involves professionals from R and from Telecable who are working together as essential resources that will continue this joint process in the new company. In January, the Group announced an expansion plan in which it is entering four new markets in 2019; León and Cantabria through the R brand, and Navarre and La Rioja through the Euskaltel brand, as well as Catalonia, where products and services are already being marketed under the RACCtel+ brand.
Through this operation, and new R and Telecable will carry on paying tax as now, in both Galicia and Asturias.
This decision also means the unification of the network operation business in all three markets. The Euskaltel Group has decided to rely on ZTE, which has been operating the Group's networks in the Basque Country since 2014, to undertake these tasks in Galicia and Asturias, so this initiative is a natural step in the Group's processes. The activity will be optimised by transferring a team of 37 people from the technology area to ZTE, which will offer the same service to the Group from within ZTE?s structure and organisation.
This will make the operator more flexible, unify ways of working and leverage best practices in the three operations. ZTE will continue to support the Euskaltel Group in its expansion process, tailoring its teams, presence and work volume to the operator's needs.
"The Euskaltel Group has chosen ZTE to manage this project so as to ensure unity and consistency in the way we work. This company is synonymous with reliability and innovation in areas such as 5G and is a pioneer in the deployment of FTTH networks throughout Spain. Our new partnership will boost the Euskaltel Group?s capacity to innovate by having a technology partner at the highest level", says Arteche.
Yin Qianhe, General Manager of ZTE Spain, comments: "This agreement makes ZTE a benchmark provider of services managed in Spain and in Southern Europe, expanding its work centres in the Basque Country to Asturias and Galicia. Since we arrived in Spain in 2004, investment and growth have been steady, our team having increased from 15 employees to over 300 at present".
The Euskaltel Group will undertake further actions to assure growth, solvency and competitiveness through the four pillars of its strategic plan, which are to enhance residential customer experience, grow in the business sector through digital transformation projects, deploy the transformation and simplification plan in the ongoing pursuit of efficiencies and implement the geographic expansion plan and the strategic partnership policy with the market's main players.
Euskaltel - Communication
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