GIC, Singapore’s sovereign wealth fund, has been chosen as the investor out of 20 or so candidates to participate, together with operators MasOrange and Vodafone Spain, in the creation of a large fibre optic network in Spain. The partners’ aim is in fact for FibreCo to become the largest fibre optic company in Spain and to deploy one of the most advanced telecommunications infrastructures in Europe.

MasOrange will be the majority shareholder in the joint venture, with 58% of the shares, while Vodafone will hold approximately 17% and GIC will control the remaining 25%. Customers of both companies will have access to the new state-of-the-art fibre optic network (FTTH). In total, around 12 million properties and 5 million customers will have exclusive access to this infrastructure.

Operators will in addition continue to maintain and operate the infrastructure they contribute to FibreCo. MasOrange will acquire Conexus Networks, a wholesale FTTH access provider in northern Spain, as part of the agreement, to contribute to the new company.

Operational efficiencies
The Spanish telecommunications infrastructure will benefit from this agreement, which will contribute to developing connectivity and digitalisation. Customers of both operators will also benefit, both by boosting operational efficiencies and by continuously improving networks and services. In addition, FibreCo will facilitate rapid adoption of cutting-edge technologies and incorporation of the latest market developments.

The new network will be sustainable, with energy-efficient FTTH technology and compliance with ESG standards. The company will have a very efficient capital structure, with over 5 billion euros of net debt. Around 20 banks have participated in its financing.

Future technology upgrades
MasOrange CEO Meinrad Spenger is very satisfied with the agreement and explained, “GIC has been chosen after a competitive process involving around 20 interested investors. This partnership will allow us to offer our customers the best premium FTTH connectivity and guarantee future technology upgrades.”

Vodafone Spain’s CEO, José Miguel García, added, “We are continuing to make progress in our strategy to transform Vodafone Spain into a more competitive, efficient and growing company. This agreement is a significant milestone in our plan, as it will guarantee our customers access to fibre networks and better service.”

GIC’s CIO for Infrastructure, Boon Chin Hau, said that Spain is “one of the most advanced countries in Europe in terms of fibre-to-the-home deployment, although there is still great potential for growth in fixed broadband penetration. In addition, FibreCo has been designed to deliver the highest quality service to customers, while offering robust features for critical infrastructure investors.”

^{Photo: GIC}