Telefónica de España S.A.U. (Telefónica España) and Vodafone ONO S.A.U. (Vodafone España) have agreed on the final terms for the establishment of a joint venture for FTTH network sharing (FibreCo), where Telefónica España will hold 63% of the equity and Vodafone España, 37%.
The FibreCo will cover approximately 3.6 million premises and will allow both parties to maximize the use of the existing FTTH network, as well as capture efficiencies, from both the existing network and its future technological evolutions, enabling them to offer the best services to their customers.
The new company will provide fiber optic service to Telefónica España and Vodafone España, both for its retail and wholesale services, and it is expected to have around 1.4 million customers at its incorporation, reaching a penetration level of approximately 40%.
This transaction enhances the fiber broadband service offering in the Spanish end-user market.
Emilio Gayo, CEO of Telefónica España, said, “With the creation of this FibreCo, Telefónica captures efficiencies and adds value to the available network, contributing to the development of the digitalization in the Spanish market for the benefit of consumers and businesses.”
José Miguel García, Main Executive of Vodafone Spain, said, “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 transaction is subject to the applicable regulatory approvals, which are expected to be obtained in early 2025. Once the transaction is closed and operations have started, both parties intend to incorporate a financial investor in the capital of the new fiber entity, with Telefónica maintaining a majority stake.
