Spain’s Telefonica partners with Canadian fund to create wholesale fiber optic network in Brazil
RIO DE JANEIRO, BRAZIL – The Telefonica Group, owner of Vivo, yesterday announced a deal to create its own network company, called FiBrasil. According to the announcement, the Spanish company will join forces with Caisse de dépôt et placement du Québec (CDPQ), a global investment group based in Canada.
Vivo’s owner and CDPQ will build, develop and operate a neutral and independent wholesale fiber optic network. In other words, the plan is for this company to lease its network to other companies in the telecommunications sector and industries. CDPQ is investing approximately R$1.8 billion in the joint venture, including primary and secondary payments.
In addition to Oi, TIM is also building its own strategy and will announce its plans in the coming weeks. In this first moment, FiBrasil will operate fiber networks in medium-sized cities outside the state of São Paulo to telecommunications operators.
“The new company is starting with a portfolio of 1.6 million homes passed from Telefonica Brasil, and intends to expand the network to 5.5 million homes within a 4-year period, speeding up customers’ migration to fiber and thus contributing to the country’s technological development,” the company said.
The goal is to prepare for the arrival of the 5G network, whose tender has been approved by the National Telecommunications Agency (ANATEL). A total of R$35 billion is expected to be invested in the country. The joint venture between Vivo and CDPQ is still pending regulatory approval. The conclusion is expected to occur in the second quarter of 2021.
“Vivo will be FiBrasil’s anchor tenant. The transaction is framed within our strategic pillars, while at the same time enabling a more efficient use of funds,” said Christian Gebara, president of Telefonica Brasil.
According to him, “fibre will be a key driver for Vivo’s future top-line growth aiming at reaching at least 24 million homes served by the end of 2024.”
Source: Exame
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