Zegona Communications has made waves in the telecommunications sector by joining forces with MasOrange to form FibreCo, aiming to establish Spain’s largest fibre network. This partnership will integrate the fibre-to-the-home (FTTH) networks of both companies, potentially covering 12.2 million premises across Spain. With this collaboration, FibreCo might become the largest FTTH network in Europe, a milestone for digital infrastructure in the region.
The joint venture builds on existing frameworks—40% of the FTTH network is already serving around 4.5 million customers. The companies plan to deploy advanced technologies such as XGS-PON to enhance their services further. This venture will not only serve Vodafone Spain’s retail users but also cater to wholesale clients, broadening its service offerings.
An exciting aspect of this venture is the projected financial impact. FibreCo is expected to bring in approximately €480 million in annual EBITDA within three years, indicating robust financial performance. In addition, the venture is actively seeking a third-party investor, showing that the proposition has piqued significant interest. The involvement stakes suggest that MasOrange will hold 50%, Zegona 10%, and the third-party investor could acquire 40%.
In the words of Eamonn O’Hare, Chairman and CEO of Zegona, “Entering this FibreCo partnership with MasOrange…transforms Vodafone Spain’s fixed line strategy…Monetising these two FibreCos is expected to deliver very significant Zegona proceeds, generating the ability to reduce leverage and provide a return of capital to shareholders.” His statement reflects optimism regarding the financial benefits and strategic direction for the company.
Beyond financial metrics, this initiative aligns strategically with Zegona’s recent collaboration with Telefonica, aimed at establishing another fibre network and renewing wholesale access terms in Spain. These moves collectively suggest a shift in Vodafone Spain’s fixed-line strategy, emphasizing full FTTH coverage and operational cost savings.
