TMT Annual Report
Innovate to survive
The TMT sector was the
scene of some of the biggest
M&A deals in the last year
and it is attracting many new
law firms looking for a piece of
the action. Those that survive will
be the ones that get to know their
clients´ business best
The technology, media and
telecommunications [TMT] sector is
evolving at a frantic rate and the landscape is
changing dramatically. Some of the biggest
mergers to take place in Iberia in the last
year have involved TMT companies, with
the result that the sector looks markedly
different compared to 12 months ago.
Law firms operating in this sector
face a number of challenges. First of all,
consolidation means fewer companies,
which means fewer clients. Secondly, the
rapid development of technology means
that lawyers face a constant struggle to keep
up to date with the latest innovations and
their legal implications. In addition, there
is also a trend for lawyers to quit private
practice and go and work for TMT clients.
There are, however, many opportunities
for law firms. TMT clients are increasingly
asking their legal advisers to assist them
in the development of their products as
legal issues are integral to their design,
meaning that lawyers who are able to form
close partnerships with their clients will
foster a sense of loyalty that is perhaps not
present in other practice areas. Meanwhile,
the rapid changes in the sector present
an opportunity for smaller, more flexible,
niche firms that are more able than the
larger more traditional firms to adapt to
fast-changing client demands.
It has been an eventful year in the TMT
markets, according to DLA Piper partner
Diego Ramos. “There’s been a boom of
corporate work around the sector,” he
says. Major deals in the last 12 months
included Vodafone’s €7.2bn acquisition
of Ono and Orange’s €3.4bn acquisition
of Jazztel (which is subject to regulatory
approval). Ramos adds that, in addition
to M&A deals, the last year has also seen
the introduction of new IP laws and new
TV regulations, some of which have been
approved and some of which are expected
to be approved before the end of the year.
Javier Marzo, partner at Garrigues, adds
that there are a large number of players in
the sector and that further consolidation
40 • IBERIAN LAWYER • September / October 2014
in the telecommunications industry, in
particular, should be expected.
Three become one
Gómez-Acebo & Pombo partner Almudena
Arpón de Mendívil agrees that there is
currently a tendency towards consolidation
in the sector. “Corporate transactions are
reshaping the market. The convergence of
the three TMT sectors is confirmed, these
moves show the importance of immediate
connectivity, speed and content,” she
says. Arpón de Mendívil adds that such
developments are promoting an increasingly
digital environment where new legal issues
such as security and privacy have become a
priority: “This creates a need for advice on
compliance in those areas.”
Osborne Clarke España partner
David Miranda says telecommunications
companies in Spain are “moving towards
a business model more focused on content
rather than the traditional infrastructure
business model”. He adds:“Entertainmentrelated services are one of the main drivers
for media and telecommunications market
operators in their search for a leading
market position.” Miranda believes a
combination of “telecommunications and
media law advice” are the characteristics of
a successful TMT law firm at present.
Clifford Chance counsel Carme Briera
highlights the acquisition of Cableuropa by
Vodafone and the acquisition by Telefónica
of a significant stake in the share capital of
DTS (the Spanish pay satellite platform) as
two of the main developments in the sector
over the last 12 months. With regard to the
DTS deal, she say that it positions Telefónica
as a “major player in the pay-TV sector”.
Another key development, according
to Briera, was the introduction of the new
General Law on Telecommunications, the
main purpose of which was to establish
measures to allow the implementation of
2020 Europe’s Digital Agenda, promote
investment in the sector, increase
competition and remove regulatory
barriers for the deployment of electronic
communications networks. She adds that
the law details the “regulation of operators
directly or indirectly controlled by entities
of the public sector in order to avoid
market distortions affecting competition”.
Cecilia Álvarez, counsel at Uría
Menéndez, says many companies that are
digitalising their businesses do not have
the necessary legal expertise in-house so
are reliant on external lawyers. She adds
that non-European clients in particular
need advice on data protection and IP
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