Telefónica Spain and Vodafone Spain have reached a definitive agreement to create FibreCo, a joint venture aimed at providing fiber optic services in the Spanish market. The new entity seeks to maximize the use of the FTTH (Fiber To The Home) network and increase efficiency in the delivery of broadband services, with Telefónica as the majority shareholder, holding a 63% stake, and Vodafone owning the remaining 37%.
FibreCo, which will cover approximately 3.6 million residential units in Spain, is expected to enhance connectivity offerings in the market, allowing both companies to optimize their existing fiber networks and facilitate future technological upgrades. The new company is estimated to launch with a customer base of around 1.4 million, representing a penetration rate close to 40%.
Improvements in Fiber Service Offerings
This agreement between Telefónica and Vodafone comes in the context of increasing demand for high-speed and reliable connectivity services in Spain, where consumers and businesses are increasingly seeking high-quality fiber optic solutions. By joining forces, both companies hope to strengthen their competitiveness in the market and enhance the end-user experience with next-generation broadband services.
Emilio Gayo, president of Telefónica Spain, emphasized the importance of this collaboration: “Following the signing of the letter of intent in July, we are moving forward with the agreement on the definitive contracts for the creation of this FibreCo, which leverages Telefónica’s network by capturing efficiencies and contributing to the development of digitalization for the benefit of consumers and businesses.”
Meanwhile, José Miguel García, CEO of Vodafone Spain, highlighted the positive impact of this alliance on the company’s strategy: “We continue to take steps in our strategy to transform Vodafone Spain into a more competitive, efficient, and growth-oriented company. This agreement is a significant milestone in our plan, as it will ensure our customers have access to fiber optic networks and better service.”
Expansion Plans and the Introduction of a Third Investor
After the launch of FibreCo’s operations, both companies plan to bring in a third investor to the capital of the new entity, although Telefónica would retain its majority shareholding. This move aims to strengthen FibreCo’s financial stability and enhance its potential for expansion and adaptation to future market demands.
The transaction is pending the necessary regulatory approvals, which are expected to be obtained by early 2025. With this strategic alliance, Telefónica and Vodafone are solidifying their roles as key players in the deployment of fiber networks in Spain, marking an important step in the country’s digitalization and improving access to advanced connectivity for homes and businesses in multiple regions.