MasOrange and Vodafone to create Spain’s largest fiber network

Spain’s largest fibre optic network is coming, as MasOrange, Vodafone Spain, and GIC team up in a €5 billion joint venture to boost digital infrastructure and sustainability across the country.

MasOrange and Vodafone launch new fibre company

MasOrange, Vodafone Spain and Singapore’s GIC Sovereign Wealth Fund have agreed to officially create Spain’s biggest fibre optic network. The aim is to provide premium fibre-to the-home (FTTH), services to millions of people.

Announced on Monday, August 4, the joint venture – called FibreCo – will serve approximately 12 million premises and 5 million customers through networks contributed exclusively by MasOrange and Vodafone. The network won’t be available to third parties.

The agreement provides:

• MasOrange holds 58 per cent in the new company
• GIC will hold 25 per cent
• Vodafone Spain will retain 17.5% of its shares.

The transaction will close in the fourth quarter of 2025.

FibreCo’s newly formed FibreCo is set to lead digitalisation, innovation and sustainability within the Spanish telecom sector.

Meinrad Spenger is the CEO of MasOrange. “We’re very happy to announce this agreement between Vodafone and GIC, which will establish the largest FibreCo company in Spain.” This venture will offer our customers the best premium FTTH connection and ensure future technology upgrades. (Press release.)

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

The infrastructure will include cutting-edge technology like XGSPON, which provides ultra-fast speeds. It will also meet ESG standards and use energy-efficient technologies to lower the environmental impact.

Backed by global banks, €5 billion in financing secured

The fibre rollout will be supported by more than €5 billion in net debt, with around 20 global banks involved. The majority of financing is investment-grade and reflects strong investor confidence.

Boon Chin Hau of GIC, Chief Investment Office for Infrastructure, said that Spain was one of the more advanced European countries when it comes to Fibre to the Home. But there is still a significant potential to increase fixed broadband penetration.

What this means to customers and Spain’s digital future

This will allow MasOrange to access a fibre network of high quality. It could improve service reliability and speed. This move raises concerns about market access and consumer choices, since the network will not be shared with smaller rivals.

MasOrange will use the €3.2 billion in proceeds to pay off debt, while FibreCo is expected to remain financially independent.

All the latest financial news.

All the latest news in Spain.