Vodafone Spain, MasOrange to form largest FibreCo in Europe By Investing.com

LONDON – Vodafone (NASDAQ: ) Spain, a subsidiary of Zegona Communications plc (LSE: ZEG ), and MasOrange have signed an agreement to create a new fiber network company, FibreCo, to operate the largest 100% fiber home network ( FTTH) network in Europe. The network will cover 12.2 million premises throughout Spain, offering high-speed FTTH services to more than 4.5 million customers.

The joint venture will combine the network assets of both Vodafone Spain and MasOrange with the aim of promoting the rapid adoption of new technologies such as XGSPON and complying with high environmental, social and governance (ESG) standards.The network is designed to deliver significant energy savings through more efficient use of the network.

FibreCo is expected to achieve EBITDA of approximately €480 million in three years, with the parties currently seeking a third-party financial investor to join FibreCo’s share capital.This investor is expected to hold a 40% stake, while MasOrange will retain 50% ownership and Zegona is expected to hold the remaining 10%.Interest from potential investors is strong been, reflecting the cost of FibreCo’s infrastructure and its multi-tenancy.

The move comes after Zegona announced in November 2024 a partnership with Telefónica de España to build another fiber optic network covering 3.6 million premises and to renew the wholesale fiber access agreement with FibreCo. is seen as the completion of Vodafone Spain’s transformation of its fixed line strategy to enable nationwide FTTH services.

Eamonn O’Hare, Chairman and CEO of Zegona, noted the significant benefits of the partnership, including guaranteed access to a future-proof all-fiber network, attractive economic terms and significant cost savings for the business. He also highlighted the monetization potential of these network companies to shareholders to provide income.

The deal is subject to customary regulatory approvals and is expected to close by the end of the first half of 2025. This strategic partnership aims to position Vodafone Spain and MasOrange at the forefront of fiber network services in Spain.

This article is powered by AI and reviewed by an editor. See our T&C for more information.