In a landmark move set to redefine Spain’s digital landscape, MASORANGE and Vodafone Spain have announced a joint venture worth a staggering EUR 10 billion.
In separate announcements, Vodafone Spain and MASORANGE disclosed the signing of a non-binding document outlining the principal terms of their agreement. This ambitious partnership seeks to cover 11.5 million premises across the country, significantly enhancing Spain’s fiber optic infrastructure and service quality.
Pending final agreements and regulatory clearances, a new entity will be established to oversee the initiative, with the intention to secure investment from a third-party equity partner. Vodafone Spain owner, Zegona Communications, said the initial ownership of the resulting company would be split based on the entity’s number of respective customers within the fixed network footprint.
The new entity, FibreCo, will see MASORANGE holding a 50% stake, while Vodafone Spain will own 10%. The remaining 40% of the shares will be sold to a third-party financial investor, contributing approximately EUR 1.5 billion to EUR 2 billion to the joint venture (JV). This strategic move is designed to alleviate the financial burdens of both companies while maintaining a controlling interest in the operation.
Latest Wholesale and Capacity News: MASORANGE to Invest EUR 700 Million in Andalusia’s Mobile and Fiber Infrastructure
FibreCo envisions setting a new standard in the fiber optic industry, providing advanced technology and ensuring energy efficiency in accordance with high Environmental, Social, and Governance (ESG) standards. The partnership aims to leverage existing infrastructure to maximize efficiency and service quality, stimulating investment and technological innovation within Spain’s telecommunications sector.
Eamonn O’Hare, Chairman and CEO of Zegona Communications, the parent company of Vodafone Spain, emphasized the strategic importance of the venture and stated, “Creating this new FibreCo in partnership with MASORANGE is a key part of our [Zegona Communications] plan to transform Vodafone Spain. It will deliver a highly efficient fiber infrastructure for our customers with leading fixed-line technology, which will be at the forefront of the industry. The proposed transaction will create significant incremental value for all Zegona stakeholders. We will have more news to share as we progress the transaction to completion.”
Also Read: Vodafone Enhances Network for 2024 European Football Championship
Christel Heydemann, CEO of Orange Group, commented on the broader strategic vision and outlined that, “The potential establishment of a fiber company with Vodafone Spain would allow us [Orange Group] to capitalize on our infrastructure. This network will become a benchmark for sustainable development, meeting high ESG standards thanks to energy savings. The main objective is to combine the assets of MASORANGE and Vodafone Spain to have the best penetration ratio on its fiber infrastructure in Spain.”
MASORANGE was formed through the merger of Orange and MásMóvil’s Spanish units (finalized in March). Meanwhile, Zegona Communications acquired Vodafone Spain from Vodafone Group just two months ago.
Telecom Review Europe Analysis:
