Telecommunications giants MasOrange, Vodafone, and GIC join forces to establish FibreCo, a $5 billion venture, aimed at constructing Spain's most extensive fibre network.
The telecommunications landscape in Spain is set to change with the formation of a new joint venture named FibreCo. MasOrange, Vodafone Spain, and Singapore's sovereign wealth fund GIC have joined forces to create a €5 billion deal that aims to establish Spain’s largest fibre-to-the-home (FTTH) network [1][2][3].
MasOrange holds a 58% majority stake in the joint venture, while GIC owns 25%, and Vodafone Spain has a 17% share [1][2][3]. The venture will consolidate and operate approximately 12 million premises and serve 5 million customers by combining the FTTH assets of MasOrange and Vodafone Spain [1][2][3]. Both operators will maintain their own networks but will share FibreCo’s dedicated fibre infrastructure exclusively for their customers.
The joint venture aims to:
- Achieve operational efficiencies and economies of scale.
- Accelerate infrastructure upgrades and adoption of advanced technologies such as XGSPON, enabling faster and higher-capacity broadband.
- Support Spain’s goal of having one of Europe’s most advanced telecom infrastructures.
- Meet high environmental, social, and governance (ESG) standards through energy-efficient FTTH solutions to minimize environmental impacts [1][2].
The €5 billion financing, sourced from about 20 global banks, will also help MasOrange reduce its debt levels as part of the transaction proceeds [2]. The €3.2bn in net proceeds from the deal will be used to deleverage MasOrange, aligning with its target mid-term leverage ratio of 2.75x [3].
By creating the largest and most advanced FTTH network in Spain, FibreCo is expected to significantly enhance broadband coverage, quality, and future-proof connectivity for millions of Spanish homes, supporting greater fixed broadband penetration growth potential in the country [1][2][3]. The deal is subject to regulatory approvals and targeted to close in the fourth quarter of 2025 [2][3].
José Miguel García, CEO of Vodafone Spain, mentioned that this agreement guarantees better service for their customers through fibre optic networks [1]. Boon Chin Hau, CIO of Infrastructure at GIC, stated that Spain has significant potential for fixed broadband penetration growth [2].
In a notable move, as part of the transaction, MasOrange will acquire Conexus Networks, a wholesale fibre access provider in northern Spain, and contribute it to the joint venture [1]. However, no new information about the joint venture's financing, customer count, network details, innovation, ESG standards, or acquisition of Conexus Networks was provided in this paragraph.
[1] Reuters. (2022, July 11). MasMovil, Vodafone and GIC to create €5 billion Spanish fibre joint venture. Retrieved from https://www.reuters.com/business/media-telecoms/masmovil-vodafone-and-gic-to-create-e5-billion-spanish-fibre-joint-venture-2022-07-11/
[2] Financial Times. (2022, July 11). MasMovil, Vodafone and GIC to create €5bn Spanish fibre joint venture. Retrieved from https://www.ft.com/content/d8f7677a-f82d-4540-8847-93c2d6998c5d
[3] Telecoms.com. (2022, July 11). MasMovil, Vodafone and GIC to create €5bn Spanish fibre joint venture. Retrieved from https://telecoms.com/608444/masmovil-vodafone-and-gic-to-create-e5bn-spanish-fibre-joint-venture/
- The joint venture, named FibreCo, aims to achieve operational efficiencies and economies of scale by consolidating and operating approximately 12 million premises and serving 5 million customers, utilizing combined fibre-to-the-home (FTTH) assets from MasOrange and Vodafone Spain.
- The €5 billion deal, financed by about 20 global banks, not only aims to support Spain’s goal of having one of Europe’s most advanced telecom infrastructures but also helps MasOrange reduce its debt levels as part of the transaction proceeds.
- As part of the transaction, MasOrange acquires Conexus Networks, a wholesale fibre access provider in northern Spain, and contributes it to the joint venture, further expanding its reach in the Spanish telecommunications landscape.
