With so many telecom giants already out there, it may seem like there isn’t any room for newcomers in the sector to break through. The likes of T-Mobile, Verizon, and Orange all occupy massive amounts of the market share in the western world, so naturally they would be the hottest stocks in their field, right?
Actually, they aren’t. According to Bloomberg, “Masmovil Ibercom SA, based in San Sebastian, Spain, has outdone them all, earning its place as the country’s fourth national carrier through acquisitions, debt, investments in fiber-optic broadband and aggressive pricing. The shares have more than doubled this year, compared with a 3.4 percent decline for the 21-member Stoxx Telecom Index.”
The result has been a rapidly growing stock as well as massive investor interest. “The carrier’s growth is driven by a straightforward marketing strategy: a no-frills offering that doesn’t include pricier content such as soccer combined with mobile and fiber packages that are among the cheapest in the market. Masmovil also has an aggressive fiber deployment strategy, centered around the construction of a broadband network mainly in small towns and rural areas overlooked by the country’s largest carriers. A wholesale agreement with Orange helps it cover larger, urban areas.” Explains Bloomberg.
Masmovil may prove to be an emerging player in European telecom, and European investors should be taking note of where it stands. As of this morning it was trading at 65.46 Euro and is listed as MAS:Soc.BOL.
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