will create a fiber optic joint venture
Telefonica will take a 63% stake in FibreCo, with Vodafone the remaining 37%.
Telefonica and Vodafone Spain have agreed to create joint venture for the production of fiber optics, called “FibreCo”.. Telefonica will own 63% of the capital, and Vodafone will own the remaining 37%. The company’s goal will be Make the most of your existing FTTH (fiber to the home) networkfor which it will cover approximately 3.6 million homesand it will have 1.4 million customers in its initial rollout, as stated in an official statement from both.
The official announcement came after months of negotiations.
It’s no secret that Telefonica and Vodafone Spain They have been negotiating for several months to create a joint venture to produce fiber optics.. We covered this in detail last August when they signed a non-binding letter of intent that fleshed out their intent to go ahead with the formation and set out the company’s basic parameters.
Thanks to this company, they will be able to offer fiber optic services to a large number of customers. Thus, They should not resort to indirect fiber. (rent from other operators), which will allow them to provide a more powerful and cost-effective service.
I’ll do a favor both retail and wholesale customers. This means that it will provide services not only to those who order fiber at home, but also to operators who want to provide services, since they will be able to “lease” the fiber from the joint venture company.
As we indicated at the beginning, Telefónica Spain will receive 63% of the capitalBye the remaining 37% will be owned by Vodafone Spain.. It is expected to have around 1.4 million customers at launch, representing a penetration rate of 40%.
Regarding the announcement, President of Telefonica SpainEmilio Gaio states: “Following the signing of the letter of intent in July, we are moving forward to conclude the final contracts with this FibreCo, which values the Telefónica network, achieving efficiency and contributing to the development of digitalization for the benefit of consumers and companies.”
On the other side, CEO Vodafone SpainJosé Miguel García comments: “This agreement is an important milestone in our plan as it guarantees our customers access to fiber networks and the best service.” This is one of the most important movements of Vodafone Spain since its acquisition of Zegona.
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