MasOrange noted that the transaction is expected to close by the end of the first half of 2025, subject to regulatory approvals
MasOrange and Vodafone Spain have reached a binding agreement to establish a joint fiber company in Spain, the former said in a release.
This joint venture will support Spain’s ongoing efforts toward enhanced connectivity and digitalization by providing both operators with one of the leading FTTH (Fiber to the Home) networks in the Spanish market.
The new FiberCo will integrate over 12 million real estate units from both MasOrange and Vodafone Spain, making it the largest fiber network company in Europe. The network will be dedicated exclusively to serving MasOrange and Vodafone customers.
Under the terms of the agreement, each company will retain and operate the networks they contribute to FiberCo. MasOrange will hold a 50% stake in the venture, Vodafone will own 10%, and the remaining 40% will be controlled by a financial investor.
The revenues generated by MasOrange from this operation will be used entirely to reduce its debt. Similarly, Vodafone’s share will be utilized to lower its leverage and provide returns to its shareholders.
The transaction is expected to close by the end of the first half of 2025, subject to regulatory approvals.
“This new FiberCo will set a European benchmark in terms of size, innovation and environmental sustainability. It will allow us to operate more efficiently and continue equipping our country with the best telecommunications infrastructure,” said Meinrad Spenger, CEO of MasOrange.
José Miguel García, CEO of Vodafone Spain, added: “We continue to make progress in transforming Vodafone Spain into a more competitive, efficient, and growth-oriented company. This agreement marks a significant milestone in our plan, ensuring that our customers will have access to top-tier fiber-optic networks and enhanced services.”
MasOrange is Spain’s largest mobile operator as a result of the merger between local carriers Orange Spain and Masmovil.
Last year, Orange and Masmovil completed a joint venture combining their operations after the clearance provided by the European Union and the Spanish government.
The Council of Ministers of Spain gave the approval for the Orange-Masmovil merger “with specific commitments and conditions”, including the implementation of an “ambitious industrial plan”.
The European body had said the approval is conditional upon full compliance with a commitments package offered by Orange and Masmovil.
During its in-depth investigation, the commission said it gathered extensive information and received feedback from market participants and other stakeholders. Following its investigation, the body said it had concerns that the transaction, as initially notified, would restrict competition in the retail markets for the supply of mobile and fixed internet services in Spain, whether offered standalone or in bundles.
However, to address the commission’s competition concerns, Orange and Masmovil committed to divest spectrum held by MasMovil to Spanish MVNO Digi Communications across three frequency spectrum bands, two medium frequency bands (1,800 MHz and 2,100 GHz) and one high frequency band (3.5 GHz). The mobile spectrum to be divested will enable Digi to build its own mobile network.
The JV was initially announced in July 2022.
