CORRECTED-OFFICIAL-Orange cuts broadband tariffs in Spain

Tue Apr 22, 2014 12:43pm EDT

(Clarifies tariff details omitted in press release in first two paragraphs)

MADRID, April 22 (Reuters) - The Spanish division of French telecoms group Orange said it would cut the price of a package that includes broadband and fixed calls by 23 percent to 38.10 euros ($52.56) per month.

The offer does not include television services. New subscribers also get an additional rebate, taking the monthly fee to 35.10 euros for the first 12 months after sign up.

The move comes amid increased merger activity in the telecoms sector, following years of falling company revenues and price wars to retain cash-strapped customers during an economic squeeze. Industry sources say Orange, the third-largest mobile operator in Spain, is looking at acquisitions to bolster its business, including broadband specialist Jazztel.

Vodafone, the largest mobile operator in Spain after Telefonica, earlier this year agreed to buy local cable company Ono, upping the heat on Orange to increase market share in Spain. ($1 = 0.7248 Euros) (Reporting by Elisabeth O'Leary and Leila Abboud; Editing by Paul Day and Susan Fenton)

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