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Vodafone Spain turns to Telefónica to expand fibre reach

vodafone-village-2016Vodafone España has struck a deal with Telefónica that will give the former access the telecom incumbent’s fibre network. It currently only has access to the network in areas that are subject to regulation.

The deal will enable Vodafone to extend the reach of its fixed network and offer ultra high-speed broadband and TV servies to a wider potential base of customers.

Vodafone, which has committed to the a mimimum purchase arrangement over the next five years, already offers broadband and TV services over the former Ono cable network and over its own fibre network.

Vodafone has previously collaborated with Orange to build out fibre and share infrastructure assets in Spain. The deal with Telefónica has led some observers to speculate that Orange may now seek to strike a similar deal with Telefónica.

Spanish regulator the CNMC recently identified 66 municipalities, covering 35% of the population, in which there was sufficient competition for Telefónica to escape having access to its network regulated.