MasOrange has joined forces with Vodafone Spain and Singapore’s sovereign wealth fund GIC to establish FibreCo, a new joint venture poised to become Spain’s largest fibre-to-the-home (FTTH) network operator.

MasOrange will retain a 58% majority stake in the newly formed FibreCo, with Vodafone and GIC holding 17% and 25% respectively. GIC was selected following a competitive process that attracted nearly 20 investors.

The joint venture, underpinned by over €5bn in financing from a consortium of around 20 global banks, will consolidate and operate approximately 12 million premises and serve 5 million customers. It will combine the FTTH assets of MasOrange and Vodafone, while both operators continue to maintain their respective networks.

“We are very pleased to announce this agreement with Vodafone and GIC to establish the largest FiberCo in Spain. GIC was chosen following a competitive process involving nearly 20 interested investors,” said Meinrad Spenger, CEO of MasOrange.

The FibreCo’s network will be exclusively dedicated to serving MasOrange and Vodafone customers. The venture aims to accelerate innovation and infrastructure upgrades in Spain, including the adoption of technologies such as XGSPON. It will also meet high ESG standards, leveraging energy-efficient FTTH solutions to minimise environmental impact.

As part of the transaction, MasOrange will also acquire Conexus Networks, a wholesale fibre access provider in northern Spain, and contribute it to the joint venture. The €3.2bn in net proceeds from the deal will be used to deleverage MasOrange, aligning with its target mid-term leverage ratio of 2.75x.

FibreCo will be fully deconsolidated from MasOrange’s accounts. The transaction is expected to close in Q4 2025, subject to regulatory approvals.

Boon Chin Hau, CIO of Infrastructure at GIC, commented: “Spain is one of the most advanced European countries in terms of its Fibre to the Home rollout, however there remains significant fixed broadband penetration growth potential.”

José Miguel García, CEO of Vodafone Spain, added: “This agreement is a relevant milestone in our plan, since it will guarantee our customers access to fibre optic networks and better service.”

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