In an ambitious move to bolster Spain’s digital connectivity, MasOrange and Vodafone Spain have agreed to establish a joint fiber company. This collaboration aims to elevate Spain’s Fiber to the Home (FTTH) network, making it one of the most extensive in Europe.
The proposed joint venture, named FiberCo, will combine a robust infrastructure boasting over 12 million real estate units. This substantial integration will position FiberCo as the largest fiber network company in Europe, dedicated to serving the existing customer bases of both MasOrange and Vodafone.
Strategically, FiberCo will streamline operations by each company retaining network operations they contribute. Ownership will see MasOrange holding a 50% stake, Vodafone keeping 10%, and a financial investor controlling the remaining 40%.
This new entity is anticipated to significantly aid in debt reduction for both operators. MasOrange plans to use its share of the venture’s revenue to slash its debt, while Vodafone aims to reduce leverage and enhance shareholder returns. The deal is pending regulatory approvals, with closure expected by mid-2025.
MasOrange CEO Meinrad Spenger expressed confidence in the venture, stating, “This new FiberCo will set a European benchmark in terms of size, innovation and environmental sustainability… equipping our country with the best telecommunications infrastructure.” Likewise, José Miguel García, CEO of Vodafone Spain, sees it as transformative, ensuring customers access to superior fiber networks and services.
This initiative follows in the wake of another significant union—the merger of Orange Spain and Masmovil, creating MasOrange. The government-approved merger required compliance with specific regulatory commitments, including spectrum divestment to maintain competitive market conditions.
By offering Digi Communications certain spectrum bands, MasOrange and Vodafone committed to safeguarding competition in Spain’s mobile and fixed internet service markets.
