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Telefônica Brasil Creates New Fibre Wholesale Network Provider in Brazil with CDPQ

Telefônica Brasil Creates New Fibre Wholesale Network Provider in Brazil with CDPQ

Telefónica Group and Caisse de dépôt et placement du Québec (CDPQ), a global investment group, have reached an agreement for the construction, development and operation of a neutral and independent optical fibre wholesale network in Brazil with the creation of FiBrasil Infraestrutura e Fibra Ótica SA (FiBrasil).

Upon completion of the transaction, Telefónica Group and CDPQ will each hold 50% in FiBrasil under a co-control governance model. Telefónica Group's 50% participation will be held through Telefônica Brazil (Vivo) and Telefónica Infra, the infrastructure arm of Telefónica Group, each holding a stake of 25%.

 

Operating as a neutral wholesale company, FiBrasil is set to deploy and operate fibre-optic networks in selected mid-sized cities across Brazil outside the state of Sao Paulo, and to offer fibre-to-the-home (FTTH) wholesale access to all telecommunications service providers, enabling them to offer these services to their end customers. Starting with a portfolio of 1.6 million Homes Passed (HPs) contributed by Telefônica Brasil, FiBrasil aims to expand its network to reach around 5.5 million HPs within 4 years, accelerating the transition to fibre and contributing to the country's technological deployment.

CDPQ is investing a total of up to R$1.8 billion (CA$408 million) in this joint venture, comprising both primary and secondary payments. CDPQ's projected capital contributions and the expected leverage to be raised by FiBrasil provide a fully funded business plan to accomplish the company's deployment targets. 

Ángel Vilá, Chief Operating Officer at Telefónica Group
We are very excited about this opportunity to partner with CDPQ, with whom we share the ambition to accelerate fibre roll-out in Brazil, contributing to Vivo's growth plans and to the country's digital development. 

Christian Gebara, Telefônica Brasil's CEO
Vivo will be FiBrasil's anchor tenant, consolidating itself as the leading convergent operator in the country. The transaction is framed within our strategic pillars, allowing Vivo to improve time-to-market, while at the same time enabling a more efficient use of funds," said . 

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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