Megafon and Telefónica buddy up

May 28, 2013

Despite their disastrous history, every few years the strategic partnership idea seems to rear its head. In theory they're one way to win a few of the advantages consolidation might bring without actually taking the politically, culturally and organisationally difficult route of a full-scale get-together.

Telefónica and Megafon say an alliance will enable the two to work together in a number of mutually beneficial ways while at the same time winning both scale and broadening the knowledge pool of both parties. They plan to "facilitate cost optimisation in equipment purchases via joint procurement and MegaFon and Telefonica will also exchange technological know-how." says the press release.

Telefónica will provide services to multinational corporate clients using MegaFon’s network and MegaFon business customers will have access to services when abroad.

"In the future, MegaFon and Telefónica via their respective specialised subsidiaries, with their focus on rapid

development, launch and monetisation of products in adjacent telecom businesses, may also promote the

development of various new businesses (such as OTT, cloud services or M2M), creating new growth

opportunities for both companies."

Many alliances in the past seemed to fail or peter out often after a period when it became plain that there were 'cultural' issues' at work, maybe this time around the lessons have been learnt.

Telefonica points out that the agreement will expand Telefonica’s existing Partners Programme which already includes equity partners such as China Unicom and Telecom Italia. Currently Telefónica and its partners provide services to customers in 52 countries with a population of 1.5 billion people.

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