Telefónica and Vodafone announced that they have entered into a commercial agreement providing for wholesale access to Telefonica’s fibre optic network.
Through the new agreement, Vodafone will immediately have access Telefonica’s fibre infrastructure, both in certain municipalities that are subject to regulation and in other municipalities where Telefónica has been freed of wholesale fibre access obligations. The agreement allows Vodafone to utilise the Telefónica fibre to supplement its network coverage and significantly extend the service area where it can offer high speed broadband and TV services.
The agreement is based on purchase commitments over a five year period and is intended to leverage the synergies that can be generated through Vodafone accessing Telefónica’s network, which will increase network utilisation and enhance the efficiency of deployments and optimise investment for both parties.
The agreement is also expected to provide consumers with improved coverage and greater choice in terms of services and next generation networks and to expand the availability of services as part of the digital economy.
Telefónica stated that the new agreement represents a key development in its wholesale business strategy through enabling the company to take a more active role in offering wholesale services in a dynamic and evolving market. It also provides more options both in terms of the provision of services by third party operators and the development of co-investment models and the delivery of its own services.
