In a significant development in the telecommunications sector, Vodafone Spain and Telefonica have finalized a strategic deal to establish a new fibre company. This move, which involves a joint effort by Zegona Communications, was initiated after the acquisition of Vodafone Spain for €5 billion.
The new entity, FibreCo, is set to cover an extensive network of 3.6 million premises across Spain. This partnership marks a considerable expansion of fibre access for 1.4 million customers of both Vodafone and Telefonica. Under the agreement, Telefonica will retain a majority stake of 63%, with Vodafone Spain holding the remaining 37%.
Eamonn O’Hare, Chairman and CEO of Zegona, remarked, “Entering into this FibreCo partnership with Telefonica demonstrates our commitment to transform Vodafone Spain’s fixed line strategy. This transaction gives our business guaranteed access to a future-proof all fibre network with attractive economic terms.”
Concurrently, Zegona has also sealed a five-year binding agreement involving Vodafone Spain, Telefonica, and Bluevia Fibra. This agreement focuses on fibre wholesaling in Spain, with Telefonica holding a controlling share of 55% in Bluevia Fibra. This complements the FibreCo initiative, broadening the scope and reach of fibre infrastructure across Spain.
Earlier communications from Zegona highlighted their intent to engage in non-binding agreements with FibreCos and join hands with entities like MasOrange. However, transitioning these intentions into binding agreements may provide robust economic benefits and aim for a consistent infrastructure strategy.
