Vodafone Spain and MASORANGE have announced the formation of a new fiber network company in Spain, temporarily named FibreCo. This initiative aims to combine the network assets of both companies to establish a 100% Fiber-to-the-Home (FTTH) network, covering 12.2 million premises across the country.
The announcement was made by Zegona Communications, the British investment fund that acquired Vodafone Spain in May 2024 for GBP 5 billion (EUR 5.877 billion). While financial details of the partnership remain undisclosed, FibreCo is projected to achieve a run-rate EBITDA of approximately EUR 480 million within three years.
Zegona and MASORANGE also plan to involve a third-party financial investor in FibreCo. Under the proposed structure, MASORANGE will retain a 50% stake, Zegona will hold 10%, and the financial investor will secure 40%. Zegona highlighted strong initial interest from potential investors, citing FibreCo’s high-quality infrastructure, extensive FTTH network, and multi-tenant business model.
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FibreCo stands to gain from its well-established FTTH network, with nearly 40% of its capacity already in use and servicing over 4.5 million Vodafone Spain and MASORANGE customers. The new fiber wholesaler is also set to deploy XGS.PON technology. Vodafone Spain will leverage FibreCo’s infrastructure to serve both its current and future retail and wholesale customers within the FibreCo network footprint.
In November, 2024, Zegona announced binding agreements with Telefónica Spain to establish a new fiber network company covering 3.6 million premises across Spain and to renew its fiber wholesale access agreement with improved terms. Zegona will hold a 10% stake in the new company. According to Zegona, the combination of these initiatives alongside FibreCo’s collaboration with MASORANGE marks the completion of Vodafone Spain’s transformation in fixed-line strategy, ensuring nationwide FTTH service delivery.
The transaction is pending standard regulatory approvals, with FibreCo’s completion and the involvement of a third-party investor anticipated by the end of the first half of 2025.
FibreCo Timeline:
- MASORANGE, Vodafone to Revolutionize Spanish Fiber Market
- Telefónica Reports 29% Earnings Increase, Plans Fiber Expansion with Vodafone Spain
- Telefónica and Vodafone Spain Renew Fiber Wholesale Deal
- Telefónica and Vodafone Spain Accelerate Fiber Partnership
- Telefónica and Vodafone España Form “FibreCo” for Fiber Optic Services
