Major telecom companies MasOrange, Vodafone, and GIC collaborate to establish FibreCo, a $5 billion partnership, aimed at constructing Spain's broadest fiber network.
MasOrange, Vodafone Spain, and GIC Form FibreCo to Create Largest FTTH Network in Spain
MasOrange, Vodafone Spain, and Singapore's sovereign wealth fund GIC have joined forces to create FibreCo, a new joint venture aimed at building Spain's largest fibre-to-the-home (FTTH) network. The venture will combine the FTTH assets of MasOrange and Vodafone, serving approximately 12 million premises and 5 million customers.
The partnership will see MasOrange holding a 58% majority stake in FibreCo, with Vodafone and GIC holding 17% and 25% respectively. The joint venture will be fully deconsolidated from MasOrange's accounts.
The venture secured more than €5 billion in net debt financing from around 20 global banks, which MasOrange will use partially for debt repayment and deleveraging, aligning with its target mid-term leverage ratio of 2.25x. The specific details about the use of the €3.2bn in net proceeds from the deal have not been disclosed.
FibreCo aims to accelerate infrastructure upgrades and adoption of advanced fibre technologies such as XGSPON to provide premium connectivity and future-proof services. The joint venture is also committed to high standards of sustainable development and energy efficiency, although specific ESG standards or energy-efficient FTTH solutions have not been mentioned.
José Miguel García, CEO of Vodafone Spain, expressed that this agreement guarantees customers access to fibre optic networks and better service. The deal is subject to regulatory approval and is anticipated to close in Q4 2025.
The transaction includes MasOrange's acquisition of Conexus Networks, a wholesale fibre access provider in northern Spain, and its contribution to the joint venture. The statement does not provide details about the specific regulatory approvals required for the transaction to close or any specific plans for innovation, infrastructure upgrades, or adoption of technologies such as XGSPON.
Boon Chin Hau, CIO of Infrastructure at GIC, stated that Spain has significant fixed broadband penetration growth potential. The formation of FibreCo represents a strategic infrastructure consolidation to enhance Spain’s fibre broadband penetration, support innovation, drive cost efficiencies, and meet growing consumer demand for high-quality broadband services.
- The joint venture, FibreCo, is set to fund the construction of Spain's largest FTTH network through a transaction with more than €5 billion in net debt financing from global banks.
- The partnership, subject to regulatory approval and expected to close in Q4 2025, aims to drive cost efficiencies and support innovation in the PE industry within the finance sector.
- GIC, being part of the joint venture FibreCo, believes that Spain has significant potential for fixed broadband penetration growth, making this deal a strategic move to consolidate infrastructure and meet the increasing demand for high-quality broadband services.
