Vodafone Spain announces today that it has signed an agreement with Orange to co-invest in fibre to the home deployment in Spain, with the intention to reach 6 million households and workplaces across 50 major cities by September 2017.
Under the terms of the agreement, Vodafone and Orange will each deploy street-level fibre (“horizontal” infrastructure) in complementary geographies. The fibre will be owned independently but will share the same technical specifications to ensure compatibility as a single network, and each partner will have guaranteed access to the whole infrastructure.
The companies will also each deploy their own in-building fibre (“vertical” infrastructure), guaranteeing access to each other, and will together request access to any third party vertical infrastructure.
Vodafone and Orange will provide Spanish consumers with a world-class fibre to the home network, commercially available from January 2014, reaching:
- 800,000 households and workplaces by March 2014;
- 3 million households and workplaces by September 2015; and
- 6 million households and workplaces by 2017 – a residential penetration level of around 40%.
The combined capital expenditure required to reach 6 million households and workplaces is expected to reach €1 billion. Vodafone and Orange believe the agreement will increase fibre deployment efficiencies and maximise returns on investment for both operators. The agreement is also open to third parties willing to co-invest.
The companies will work with regulators to ensure:
- Sharing of vertical infrastructure at prices based on actual cost;
- Effective access to Telefónica’s ducts to facilitate rapid mass deployment of horizontal infrastructure; and
- Measures to obtain necessary administrative permits in a timely manner.
Vodafone Chief Executive for the Southern Europe region, Paolo Bertoluzzo, said: “I am delighted to announce our plans to work with Orange to deploy fibre networks across Spain. This agreement demonstrates Vodafone’s commitment to provide high-speed unified communications services to our customers coupled with our willingness to invest when there are positive returns.”
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Vodafone is one of the world's largest mobile communications companies by revenue with approximately 403 million customers in its controlled and jointly controlled markets as of 31 December 2012. Vodafone currently has equity interests in over 30 countries across five continents and more than 50 partner networks worldwide. For more information, please visit www.vodafone.com.