Telefónica and Vodafone Spain Renew Fiber Wholesale Deal

Telefónica and Vodafone Spain have agreed to strategically extend their fiber wholesale agreement to optimize network investment and enhance synergies. The renewal allows Vodafone to maintain access to Telefónica’s expansive fiber network, which covers 30.2 million premises across Spain as of June 2024. This agreement builds on the original deal signed in 2017, reflecting the ongoing collaboration between the two operators. 

It is a strategic move that aims to maximize the use of existing infrastructure and ensure cost-efficient growth in the increasingly competitive Spanish telecom market, thereby potentially reshaping the industry landscape.

While specific terms and the extension duration are yet to be finalized, the companies are focused on maximizing network usage and ensuring efficient investment strategies. This renewal is pivotal for the Spanish telecom market, which is undergoing significant restructuring.

Related: Telefónica Reports 29% Earnings Increase, Plans Fiber Expansion with Vodafone Spain

Industry Realignment and Competitive Dynamics

The deal is part of a broader realignment in Spain’s telecom sector following significant market developments, including the merger of Orange Spain with MásMóvil and Zegona Communications’ acquisition of Vodafone Spain. Both Telefónica and Vodafone have been working to secure new wholesale agreements amid this shifting landscape.

Earlier this year, the two companies signed a preliminary agreement to establish a joint FibreCo, covering 3.5 million premises. Long-term service agreements were included to stabilize revenues for both companies. Telefónica’s Chief Operating Officer, Ángel Vilá, is confident that these partnerships will contribute positively to wholesale revenues while maintaining competitive pricing that does not disrupt the retail market.

However, the landscape remains fiercely competitive, with smaller challengers placing pressure on pricing.

Vodafone Spain’s Moves in the Wholesale Space

Vodafone Spain has also been proactive in the wholesale space, securing a more significant FibreCo deal with MASORANGE, covering approximately 11.5 million premises. This collaboration promises financial and operational efficiencies, further enhancing Vodafone’s ability to manage costs and strengthen its position in the market.

Additionally, in June 2024, Vodafone Spain renewed its wholesale agreement with Finetwork, expanding its scope to include 5G services alongside its existing fixed and mobile offerings. This deal aligns with Zegona’s broader strategy to return Vodafone Spain to growth by reducing costs and securing more wholesale customers.

Telefónica’s Wholesale Strategy Amid Revenue Challenges

Telefónica, which has forecasted wholesale revenue declines through 2026, is taking steps to shore up its domestic and international wholesale businesses. In Spain, it has signed a long-term wholesale deal with Digi Spain and a 16-year agreement for radio access network sharing. These moves are expected to stabilize revenues, although, Telefónica is still negotiating new terms with MASORANGE for wholesale broadband and infrastructure sharing.

With Telefónica and Vodafone actively working to strengthen their wholesale portfolios, the Spanish telecom market is poised for continued evolution as operators balance growth, competition, and investment.

Telecom Review Europe Newsletter

Subscribe to our newsletter!

Subscribe to our weekly newsletter and stay updated.

    terms & conditions

    Telecom Review Europe