Summary
- Avatel has integrated 25 telecommunications companies, including Televisión Costablanca SL, into its main company.
- The merger aims to simplify Avatel’s corporate structure.
- A National Markets and Competition Commission (CNMC) fine was imposed on Avatel for inaccurate reporting.
- CNMC reduced the fine, resulting in a final payment of €1.08 million.
Avatel Simplifies Corporate Structure through Major Merger of Telecommunications Firms
In a meaningful move reflecting its aggressive expansion strategy, Avatel has officially integrated 25 telecommunications companies into its primary entity, Avatel Telecom SA. This merger, which includes notable firms such as Televisión Costablanca SL in Torrevieja, aims to streamline the company’s corporate structure and enhance operational efficiency across the region.
Details of the Merger
The merger, which was formalized on June 28, 2024, involves the absorption of these companies, effectively extinguishing their separate legal identities and transferring all assets and liabilities to Avatel Telecom. The integration effort follows several years of acquisition activity in Alicante and the wider Community of Valencia, with Avatel actively purchasing regional telecommunications providers.
List of Integrated Companies
| Company Name | Specialization |
|---|---|
| Televisión Costablanca | Local Television |
| Fibra Óptica Málaga | Fiber Optic Services |
| aireon Telecom | Telecommunications |
| Canal Priego TV | Local Broadcasting |
| Avatel Canarias | Regional Telecom |
| Holafibra Telecom | Fiber Connectivity |
Regulatory Challenges and Fine Imposed
While streamlining its operations, Avatel has faced regulatory scrutiny. in February 2024, the National Markets and Competition Commission (CNMC) imposed a fine of €1.81 million for providing inaccurate information regarding its activities in 2023. After recognizing its responsibility and paying the penalty promptly, the fine was reduced by 40%, resulting in a final payment of €1.08 million.
The CNMC’s decision highlights the importance of accurate reporting in the telecommunications sector, as the agency noted instances where Avatel reported a significant and unjustified increase in subscribers. The fine serves as a reminder for companies in the sector to maintain transparency and adhere to regulatory standards.
Conclusion
Avatel’s recent merger not only demonstrates its commitment to consolidation and strengthening its market position but also underscores the critical importance of compliance in the telecommunications industry. As the company continues to grow and evolve,stakeholders will be watching closely to see how it manages its regulatory relationships alongside its ambitious expansion strategy.
For more information, you can read the full article on Alicante Plaza.
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