Telefónica and Vodafone Spain have reached an agreement to create a fiber joint venture in the country. The first company will own 63% of the new company and the second the remaining 37%. This was reported by the company chaired by José María Álvarez-Pallete through a statement sent to the National Securities Market Commission (CNMV) this Thursday after presenting its quarterly results.
“The company will cover approximately 3.6 million real estate units, with assets that are currently part of the Telefónica de España fiber and which represent approximately 12% of its national network. The company is estimated to initially have around 1.4 million customers, implying a penetration rate of around 40%,” the statement said.
Telefónica, which presented its third quarter results on Thursday, also announced that as part of its new joint venture with Vodafone Spain, will be signed service contracts of services between the two parties.
Telefónica and Vodafone Spain
This collaboration, announced at the end of July, aims to strengthen the offer of high speed in optical fiber for the final consumer market in Spain, thus improving the quality and availability of connectivity in the country.
“After the transaction closes, Telefónica Spain will own 63% of the company and Vodafone Spain the remaining 37%. Closing of the transaction is subject to obtaining the corresponding regulatory authorizations,” the press release specifies.
“With the creation of this fiberco“Telefónica achieves efficiency gains and enhances the available network, contributing to the development of digitalization in the Spanish market for the benefit of consumers and businesses,” underlined the president of Telefónica Spain at the end of last July. Emilio Gayo.
Meanwhile, the CEO of Vodafone Spain, Jose Miguel Garciastressed that this agreement is “one more step” in the strategy aimed at transforming Vodafone Spain into a “more competitive company”, as well as guaranteeing access to fiber optic networks to its customers and offering them “a best service.”
Agreement with Masorange
In this way, the agreement will be similar to the one recently signed between Vodafone Spain and Masorangeaimed at creating a joint venture fiber optic network, although the volume of housing managed in this case is much higher, around 11.5 million.
Also last July, Masorange and Vodafone Spain announced the signing of a “confidential” and “non-binding” letter of intent containing the main terms of a network sharing agreement in Spain, which should result in the creation of a common fiber optic network. company, for which they are looking for a third investor.
If finalized, the new shared network partnership will cover approximately 11.5 million installations in the country and provide access to fiber optic services to Masorange and Vodafone Spain in this coverage area.
Likewise, it is expected that Masorange will control 50% of the company, Vodafone Spain will have 10% and a third investor will be sought to own the remaining 40% of the company. fiberco. Furthermore, the transaction should close in the first half of 2025.
