Zegona Communications and MasOrange have entered into a joint venture to create FibreCo, which will merge their fibre-to-the-home (FTTH) networks in Spain. This collaboration follows Zegona’s €5 billion acquisition of Vodafone Spain in June 2024.
FibreCo aims to build the largest FTTH network in Europe, covering approximately 12.2 million premises across Spain. The venture will leverage existing infrastructure, with nearly 40% of the network already serving 4.5 million customers. The partners plan to enhance service quality by deploying advanced technologies, such as XGS-PON, for faster, more reliable connectivity.
Vodafone Spain will utilize FibreCo to offer both retail and wholesale services. The project is expected to generate an annual EBITDA of €480 million within three years.
The venture’s ownership will be divided, with MasOrange holding 50%, Zegona 10%, and a third-party investor, which the partners are actively seeking, taking a 40% stake. The deal has reportedly attracted significant investor interest.
Eamonn O’Hare, Zegona’s Chairman and CEO, highlighted that the partnership would optimize Vodafone Spain’s fixed-line strategy, delivering a future-proof national fibre network and substantial cost savings.
The deal is pending regulatory approval and is expected to close by mid-2025, alongside the onboarding of the third-party investor. This partnership aligns with Zegona’s recent agreements with Telefónica to further expand fibre networks in Spain.
