Ministry of Telecommunications will decide if LycaMobile ES should be suspended, closed or Migrated

Eleconomista reports that even mobile phone providers do not escape the crisis rocking the Spanish economy.

Lycamobile, the mobile virtual network operator (MVNO) has reportedly not fulfilled its contractual obligations with Vodafone, despite being the largest Spanish MVNO in the market, with more than 600,000 users. In this situation, the MNO Vodafone has threatened to suspended its role in providing wholesale services until the outstanding payments have been resolved, and the issue is now in the government hands.

Given the above, the Secretariat of State for Telecommunications and the Information Society, will provide its decision in the coming weeks, for the best way to resolve the conflict between Lycamobile and Vodafone. The threat of a possible suspension of service would affect all customers of the company.

For now, Vodafone Spain has reported the breach of contract to the Telecommunications Market Commission (CMT), which dates back to last spring and that this could jeopardize the viability of the MVNO service. Meanwhile, the regulator analyzed the information provided by both parties, and has decided to transfer the case to the Secretary of State for Telecommunications and the Information Society.

The resolution of CMT, was approved by the Council and it indicates that the agency is committed to “ensure the balance of relations between operators and because the users’ interests are safeguarded in the hypothetical assumption that the situation of suspension may be extended in time or in the event of a possible end of the contractual relationship between the two operators. ” Furthermore, the CMT has assessed that “the possible suspension of the wholesale contract involves breaking the principle of interoperability of services, public interest and regulatory objective.”

In the information sent by the controller; Lycamobile records the possibility of breaking the agreement, although that would require contractual extinction of several months to complete the migration without users adversely affected.

The virtual operator, according to the said resolution of CMT, notes that “there is a mismatch of cash” generated by the difference between the income of its customers and the billing system agreed with Vodafone, and the problem “has been exacerbated by the growth Lycamobile in the Spanish market. ” Despite the above, the regulator said Lycamobile has not fulfilled its outstanding payments, as indicated by sources familiar with the situation.

Lycamobile is the fifth largest mobile operator in Spain, only to Telefónica, Vodafone, Orange and Yoigo. The company specializes in the international call market, with competitive prices thanks to its interconnection agreements with major telecommunications operators worldwide. In addition to Spain, the company has operations in Australia, Belgium, Denmark, France, Germany, Ireland, Norway, Netherlands, Poland, Portugal and Sweden.

LycaMobile was not available for Comment.

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