This is the same model as Vodafone’s fibreco with MasOrange announced last week: the two JV aim to pass a total of 15m premises
Vodafone Spain and Telefonica de Espana have signed a confidential, non-binding agreement that sets out the key terms to create a new fibre network company. The announcement was made by Zegona Communications which owns Vodafone Spain. The fibreco will cover about 3.5 million premises and will provide fibre access services to both companies within this footprint.
The combination of this new fibreco plus the deal Zegona announced last week with MasOrange will bring the total number of homes Vodafone Spain and partners will pass to 15 million. Zegona says they will give Vodafone Spain cost efficient access to extensive all-fibre networks across Spain”.
Initial ownership
The initial ownership split of the fibre with Telefonica de Espana will be based on their customer numbers within the footprint. The parties intend to bring a third-party financial investor into the share capital of the new company. At that point, they expect Telefonica to retain majority ownership and Zegona to retain 10%.
This is a similar model to that Vodafone Spain is adopting with MasOrange.
Eamonn O’Hare, Chairman and CEO of Zegona, commented “Creating a new FibreCo in partnership with Telefonica is another key milestone in our plan to transform Vodafone Spain.
This transaction fully complements the MasOrange FibreCo we announced last week and gives Vodafone Spain guaranteed access to future-proof networks with attractive economics. Moving Vodafone Spain to these new FibreCo structures is expected to create significant incremental value for all Zegona stakeholders.”