Spain’s number one operator Telefonica has agreed to share part of its fibre optic network with rivals Vodafone and Orange.
The pact gives Vodafone and Orange access to the incumbent’s vertical fibre in-building network, and in return the two…
Spain’s number one operator Telefonica has agreed to share part of its fibre optic network with rivals Vodafone and Orange.
The pact gives Vodafone and Orange access to the incumbent’s vertical fibre in-building network, and in return the two operators will roll-out fibre in areas which Telefonica does not already cover.
Vodafone and Orange will make one-off payments to Telefonica for access that will last at least 20 years, and telecoms regulator the CMT will set the price.
In March Vodafone and Orange announced a JV to build a €1bn fibre network. When that announcement was made the two operators complained that its negotiations to share Telefonica’s vertical infrastructure had been going on for months and that an agreement could not be reached. In April they asked the CMT to intervene.
Analyst firm Bernstein Research believes that for Vodafone this latest move is simply delaying the inevitable.
“We think that this agreement and Vodafone’s plans to co-build fibre with Orange are just a temporary stop-gap measure that will have not stave off the inevitable strategy – buy,” it said in a memo.
Spanish cablecos Ono and Jazztel are both seen as potential targets for Vodafone.
The analysts also noted that the significance of the fibre sharing agreement was limited, because today only 1 million homes connected by Telefonica are subject to the agreement.
