Telefónica and Vodafone have reached an agreement to create a joint company for FTTH network sharing (“FibreCo”), in which Telefónica Spain will have 63% of the capital and Vodafone Spain 37%. FibreCo will cover approximately 3.6 million real estate units and will allow both parties to maximize the use of the current FTTH network, as well as capture efficiencies, both from the existing network and its future technological evolutions, allowing them to offer the best services to their clients. .
The new company will provide fiber optic services to Telefónica Spain and Vodafone Spain, both for their retail and wholesale services, and upon its incorporation it is estimated to have around 1.4 million customers, which implies a penetration level of approximately 40%.
This transaction will improve the offer of fiber optic broadband services in the Spanish market for the end consumer. Emilio Gayo, president of Telefónica Spain, has stated that “after the signing of the agreement of intent in July, we are moving forward with the agreement of the definitive contracts for the creation of this FibreCo that enhances the Telefónica network, with the capture of efficiencies and the contribution to the development of digitalization for the benefit of consumers and companies.”
The new company will provide fiber optic services to Telefónica and Vodafone, both for their retail and wholesale services.
For his part, José Miguel García, chief executive of Vodafone Spain, assures that “we continue to take steps in our strategy to transform Vodafone Spain into a more competitive, efficient and growing company. This agreement is a relevant milestone in our plan, since it will guarantee our customers access to fiber optic networks and better service.”
The proposed operation is subject to the relevant regulatory authorizations, which are expected to be obtained in early 2025. Following the closing and commencement of operations, both parties intend to incorporate a third investor in the capital of the new fiber entity, where Telefónica will maintain the majority shareholding.
