Orange (ORA: EN Paris) has secured a new €400m loan “at very favourable” rates from the European Investment Bank(EIB) to deploy FTTH and 4G networks across Spain over the next two years.
The French telco, which has recently acquired local…
Orange (ORA: EN Paris) has secured a new €400m loan “at very favourable” rates from the European Investment Bank(EIB) to deploy FTTH and 4G networks across Spain over the next two years.
The French telco, which has recently acquired local fixed-line player Jazztel, has so far obtained a total €1.3bn of financing from the EIB.
“Our presence in the Spanish market-strengthened by the Jazztel acquisition-where we have over 18 million customers, and our future plans have once again encouraged the EIB to place its trust in our business project, which is based on growth, next-generation network investments and innovation in the marketing of new products and services,” Jean Marc Vignolles, CEO of Orange Spain and Jazztel.
Orange aims to extend fibre coverage to 10 million Spanish households by the end of 2016, and 4G to 95% of the local population by 2018.
The European Commission approved the Orange/Jazztel deal in May on the condition that the French telco sold a fibre network representing 720,000 building units, largely composed of redundant connections between the Orange and Jazztel’s existing networks.
In addition, Orange must temporarily provide the eventual buyer with a wholesale subscription offer to Jazztel’s ADSL network. If necessary, the French telco will also provide a mobile wholesale offer if they do not already have a 2G, 3G and 4G access.
MVNO Masmovil is seen as the most likely bidder.
