Mobile price wars in Spain: Vodafone rumored to cut 1000 jobs17 Jan, 2013
According to union sources, Vodafone Spain is negotiating with the unions about reducing its workforce by around 25 percent (Vodafone hasn’t confirmed the rumors) or roughly a thousand jobs. The move comes after Vodafone already cut employees’ salaries and working days.
Just like Free is hurting France Telecom and other incumbents, the Spanish telecoms are in a race to the bottom with mobile virtual network operators (mvno’s). In November 2012, Yoigo cut the prices of its calls by more than 20 percent – putting the cost for a minute at 1 eurocent.
Telefonica and Vodafone are bleeding customers because of this:
the price war among Spanish mobile operators has intensified as cash-strapped consumers switch in record numbers to cheaper MVNOs. (source: FierceWireless Europe)
The same pattern is occuring in France, where Free is hurting the traditional telecom’s bottom lines: France Telecom CEO Stéphane Richard said in an interview a few weeks ago that France Telecom’s revenue per customer is down by 20 percent, and that the telecom expects its cash flow to decrease by 1 billion because of the sharp competition by Free.
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