More than seven years ago, Vodafone and Telefónica closed a deal that would make history. Basically, the red operator reached an agreement with the Spanish operator to access Movistar’s fiber optic network. Three years later, they renewed it and even improved the conditions. However, the deadline is set for the end of 2024. So both companies seem to have started renegotiating this alliance.
Not only Telefónica and Vodafone Spain are finalising all the details to create a joint fibre optic company, there is also another alliance that they are going to renew. It is about the rental of fibre, an agreement for which was closed for the first time at the beginning of 2017. The issue is that this year, right at the end, the last deadline they reached in 2020 expires. Therefore, as reported by the media ‘La Información’, they have already begun to renegotiate this historic pact.
They seek to renew the fiber lease
At the same time that details are being finalised to create a joint fibre optic company with the aim of covering up to 3.5 million homes in Spain, Vodafone and Telefónica have already sat down at the negotiating table to reach an agreement to renew the rental of fibre optics that they reached more than 7 years ago.
This agreement was undoubtedly historic. And all because Vodafone managed to gain access to Telefónica’s fibre optic to the home (FFTH) in our country, with a series of market and unregulated conditions. Therefore, the door was opened for the operator to have the possibility of reaching unregulated areas and regulated areas. Therefore, at that time, it was estimated that it had access to more than 12 million real estate units.
However, this agreement is about to expire. As the weeks go by, it is getting closer to its end. The final date is at the end of 2024, so the objective of this renegotiation is to close a renewal during the next few weeks. However, there is no date on the table and, as explained by the media ‘La Información’, the operators have not made any comments on the matter.
And it should be noted that this is not the first time that it has been renewed. If they signed it in 2017, Vodafone and Telefónica agreed to a renewal until 2024 precisely during the summer of 2020. So it would not be the first time that they have renegotiated this agreement. In addition, on that occasion, the conditions for the Zegona operator were improved, such as in terms of coverage and “unitary” prices.
What about the fiberco agreement?
If this renewal is expected to be finalised in the coming weeks, we will still have to wait at least until early 2025 to see the agreement for this new ‘fiberco’ between Telefónica and Vodafone. In addition, this new joint venture “will cover approximately 3.5 million real estate units and will allow both parties to maximise the use of the current FTTH network.” This undoubtedly represents “one more step in our strategy to transform Vodafone Spain into a more competitive company, guaranteeing access to fibre optic networks for our customers and offering them a better service,” as explained by José Miguel García, CEO of Vodafone Spain.
