Telefónica has announced the creation of a standalone fibre wholesale network in Brazil.
Called FiBrasil Infraestrutura e Fibra Ótica SA (FiBrasil), the business will be operated as a 50-50 joint venture with global investment group Caisse de dépôt et placement du Québec (CDPQ), which is investing a total of R$1.8 billion. Half of Telefónica’s stake will be held through Telefónica Brazil, with the other half held through infrastructure business Telefónica Infra.
FiBrasil will deploy and operate fibre-optic networks in selected mid-sized cities across Brazil outside Sao Paulo, and to offer FTTH wholesale access to all telecommunications service providers.
The company will have a base of 1.6 million homes contributed by Telefônica Brasil. FiBrasil aims to expand its network to reach around 5.5 million homes within four years.
Ángel Vilá, COO at Telefónica Group, said: “We are very excited about this opportunity to partner with CDPQ, with whom we share the ambition to accelerate fibre roll-out in Brazil, contributing to Vivo’s growth plans and to the country’s digital development. We are delighted to put our FTTH expertise and commercial capabilities behind this partnership, joining forces with CDPQ as a key element for success, strengthening our value proposition and reinforcing our growth strategy.”
Emmanuel Jaclot, EVP and head of infrastructure, CDPQ, said: “CDPQ is thrilled to establish a joint venture with Telefónica, one of the world’s leading telecommunications service providers, to accelerate the delivery of next-generation fibre optic infrastructure to over 5 million Brazilian homes. This transaction is an opportunity to further diversify our infrastructure portfolio and demonstrates CDPQ’s ongoing interest for Brazil and the wider Latin America region, where we see opportunities in a variety of sectors.”
“Vivo will be FiBrasil’s anchor tenant, consolidating itself as the leading convergent operator in the country. The transaction is framed within our strategic pillars, allowing Vivo to improve time-to-market, while at the same time enabling a more efficient use of funds,” said Christian Gebara, Telefónica Brasil’s CEO. Gebara also mentioned that “fibre will be a key driver for Vivo’s future top-line growth aiming at reaching at least 24 million HPs by the end of 2024, and FiBrasil will be Vivo’s platform for expanding coverage to greenfield cities.”
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