Telefónica Spain and Vodafone Spain plan to announce in the next few hours the definitive agreement for the creation of a fiber optic joint venture (Fibreco). Among other consequences, the movement of the two telecos opens the door for the search for a financial partner interested in participating in the capital of the new company. As this newspaper has been able to find out, the two operators have agreed on all the details of the future company, so all that remains is to formalize the principle of non-binding agreement already advanced by elEconomista and established at the end of last July.
As is mandatory in these cases, the operation designed by the two companies will remain pending regulatory authorizations, which presumably hope to be resolved during the first quarter of 2025. It was last summer when both rivals in the Spanish telecommunications market revealed the project for a joint venture to share the FTTH network and immediately begin a period of exclusive negotiations to agree on definitive terms, including the entry of a third partner. Among other magnitudes, The joint venture will cover approximately 3.5 million real estate units, with the aim of generating synergies for the two operators and maximizing the use of the FTTH network.
The savings will come not only from the sharing of the existing network but, especially, from “future technological evolutions”, as Telefónica and Vodafone recognized a little over four months ago. For now, The aforementioned Fibreco will provide service over common fiber optic infrastructures, both for its retail and wholesale services.
The first estimates point to a potential market of 1.4 million customers connected by fiber optics, with the objective of achieving a penetration level of approximately 40% in the FibreCo footprint.
It is known that participation in FibreCo will be based on the number of clients of each partner in the footprint, so that the transaction plans to improve the offer of fiber broadband services in the Spanish market for the final consumer.
Emilio Gayo, president of Telefónica Spainrecognized last summer that the aforementioned FibreCo intends to “capture efficiencies”, while “giving value to the available network, contributing to the development of digitalization in the Spanish market for the benefit of consumers and companies.”
For its part, José Miguel García, chief executive of Vodafone Spain (owned by Zegona), positively valued the principle of agreement by pointing out that it is “one more step in the strategy of transforming Vodafone Spain into a more competitive company, guaranteeing access to fiber optic networks to our clients and offering them better service.”
This movement bears similarities to the one designed by Vodafone Spain and Masorange, companies that have signed a non-binding letter of intent for another network sharing pact at the national level. In that case, Vodafone and Masorange plan to offer their respective shared fiber optic services over a coverage of 11.5 million installations.
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