Telefônica sets up independent network company
With an eye on a still-largely unexplored market in Brazil, the local unit of Spain's Telefónica, which operates under the Vivo brand, is structuring an independent provider of fiber-optic infrastructure, of neutral host network. Its main goal is to accelerate the expansion of its fiber-optic network with the arrival of financial or industrial investors. The initiative, announced to the market on Wednesday, coincides with Oi's preliminary talks to more than ten investors interested in acquiring part of Infra Co, provisional name of the infrastructure company that the telco intends to create.
"This gives us economy of [capital expenditure], since the investment is not entirely ours; it gives us speed to do this and also is a much more logical way of creating infrastructure in the country where this infrastructure can be shared," Telefônica Brasil CEO Christian Gebara said in a talk with journalists before the conference call on second-quarter earnings.
He said talks with "several parties" were already underway, but didn't elaborate. "They already are signing the [non-disclosure agreements]," he said. The choice of the ideal partner is expected for this year, he added, for this new company to be formed in 2021, when it would begin operating.
Telefônica formalized this week, together with rivals Claro and TIM, a R$16.5 billion offer for Oi's wireless assets. Mr. Gebara said Telefônica had no intention of participating in the dispute for a stake of Infra Co - the priority is in setting up its own infrastructure company, based on fiber optic. The network to be offered could be neutral. It could be used both by Vivo and by third parties.
"To me, [this is a] trend, with the main goal of complementing the capacity of investment, because you can't do everything," said an industry executive who asked not to be named.
As of June, Telefônica's fiber-to-the-home service was available for 13 million households, in 216 cities. The company had 2.83 million FTTH clients.
Telefônica's new company aims to have 5 million households with FTTH service over four years. Part of these potential clients would be transferred by Vivo, which would contribute with 1.1 million households outside of São Paulo state. Telefônica, Mr. Gebara said, would contribute with expertise in network construction and operation. The third partner would be the financial or...
Para continuar a ler
PEÇA SUA AVALIAÇÃO