The new joint venture, FibreCo, will manage a network covering 12 million homes and will accelerate the adoption of technologies such as XGSPON, ensuring efficiency, sustainability, and innovation in the country’s telecommunications infrastructure.
MasOrange, Vodafone Spain, and the Singapore-based sovereign wealth fund GIC have announced an agreement to create Spain’s largest fiber optic network company: FibreCo. This new company will oversee a state-of-the-art FTTH (fiber-to-the-home) network with coverage extending to over 12 million properties and nearly 5 million customers.
The ownership structure will have MasOrange as the majority shareholder with a 58% stake, GIC holding 25%, and Vodafone Spain owning 17%. FibreCo will operate as a jointly controlled enterprise, exclusively managed by MasOrange and Vodafone, who will continue managing the infrastructure they have contributed.
A boost to connectivity and the digital economy
Through this partnership, the three companies aim to ensure Spain remains a European leader in network deployment and quality. The joint network will enable economies of scale, lower operational costs, and speed up the deployment of emerging technologies like XGSPON, which offers symmetrical speeds over 10 Gbps.
MasOrange CEO Meinrad Spenger emphasized that the agreement “will allow us to offer our customers the best premium FTTH connectivity and guarantee future technological upgrades.” José Miguel García, CEO of Vodafone Spain, added that this step is “a significant milestone” in his company’s transformation strategy, “ensuring access to cutting-edge fiber optic networks.”
Boon Chin Hau, Infrastructure Investment Director at GIC, highlighted that Spain “is one of the most advanced fiber markets, although there is still growth potential,” and noted that the new FibreCo has been designed to deliver “robust features for customers and investors.”
Strong financing and commitment to sustainability
FibreCo has secured over €5 billion in investment-grade net debt, provided by around twenty international banks. This financing structure will ensure sustained investments and maintain a solid financial profile.
Additionally, the joint venture comes with a strong focus on sustainability. Its FTTH network will be designed following ESG and energy efficiency standards, aiming to minimize electricity consumption and reduce environmental impact.
MasOrange plans to use the €3.2 billion net proceeds from the deal to reduce debt as part of its deleveraging strategy, targeting a debt-to-EBITDA ratio of 2.75x in the medium term. The company will also incorporate the acquisition of Conexus Networks, a wholesale FTTH provider in northern Spain, into FibreCo.
Spain consolidates its leadership in next-generation networks
The agreement reinforces Spain’s position as one of Europe’s most advanced digital infrastructure markets. Currently, MasOrange has fiber coverage in 31 million homes, while Vodafone connects more than 13.5 million mobile customers and 2.8 million broadband subscribers.
With the creation of FibreCo, both companies will leverage a shared platform to maintain competitiveness and lay the groundwork for the next generation of digital services, especially in areas such as the metaverse, distributed artificial intelligence, and 5G expansion.
The transaction, which is still subject to regulatory approvals, is expected to be completed in the fourth quarter of 2025. It is a strategic move that will reshape the telecommunications landscape in Spain and could set the foundation for future operator collaboration models across Europe.
Source: MasOrange Press Release