Major telecommunications companies MasOrange, Vodafone, and GIC unite to fund FibreCo, a $5 billion project, aiming to construct Spain's expansive fibre network.
Spain's Largest Fibre-to-the-Home Network Operator Takes Shape
A strategic partnership between MasOrange, Vodafone Spain, and Singapore’s sovereign wealth fund GIC, known as FibreCo, is set to revolutionize Spain’s fibre market. The joint venture aims to create Spain’s largest fibre-to-the-home (FTTH) network operator, consolidating the FTTH assets of MasOrange and Vodafone Spain, covering approximately 12 million premises and serving around 5 million customers.
The collaboration was selected following a competitive process that attracted nearly 20 investors. MasOrange will hold a 58% majority stake in FibreCo, while Vodafone and GIC will hold 17% and 25% respectively. As part of the transaction, MasOrange will acquire Conexus Networks, a wholesale fibre access provider in northern Spain.
The strategic goals of FibreCo include accelerating innovation and infrastructure upgrades in Spain’s fibre market, building a sustainable, energy-efficient FTTH network, and leveraging a robust capital structure to enable large-scale deployment and upgrades. The venture aims to rapidly adopt emerging technologies such as XGSPON (a next-generation passive optical network technology), thereby enhancing service quality.
FibreCo’s network will be exclusively dedicated to serving MasOrange and Vodafone customers, reinforcing competitive yet cooperative market dynamics in Spanish FTTH deployment. The joint venture reflects a broader strategic response to Spain’s advanced but still growing fixed broadband market, aiming to enhance digital equity, infrastructure modernization, and service excellence in line with regulatory reforms and EU digital agenda objectives.
Boon Chin Hau, CIO of Infrastructure at GIC, stated that Spain is one of the most advanced European countries in terms of Fibre to the Home rollout. He also highlighted the significant fixed broadband penetration growth potential in Spain. FibreCo has over €5bn in financing from a consortium of around 20 global banks, mostly investment grade, which underscores strong market confidence and enables large-scale deployment and upgrades.
The joint venture is positioned to serve exclusively MasOrange and Vodafone customers, reinforcing competitive yet cooperative market dynamics in Spanish FTTH deployment. José Miguel García, CEO of Vodafone Spain, considers the agreement a relevant milestone in their plan to guarantee customers access to fibre optic networks and better service.
The transaction is expected to close in Q4 2025, subject to regulatory approvals. FibreCo will be fully deconsolidated from MasOrange’s accounts. The €3.2bn in net proceeds from the deal will be used by MasOrange to delever, aligning with its target mid-term leverage ratio of 2.75x. FibreCo will meet high ESG standards, leveraging energy-efficient FTTH solutions to minimise environmental impact.
In summary, FibreCo represents a large-scale, financially robust, and ESG-focused initiative to lead Spain’s fibre network evolution, combining infrastructural scale with technological innovation to capture growing broadband demand. The joint venture is expected to significantly contribute to Spain’s digital infrastructure and climate goals, while enhancing service quality for millions of customers.
[1] MasOrange Press Release, [date], [link] [2] Vodafone Spain Press Release, [date], [link] [3] GIC Press Release, [date], [link] [4] European Commission Press Release, [date], [link] [5] Spanish Ministry of Economic Affairs and Digital Transformation Press Release, [date], [link]
- The strategic partnership between MasOrange, Vodafone Spain, and GIC, known as FibreCo, aims to revolutionize Spain's fibre market through a transaction that will create Spain's largest fibre-to-the-home network operator, using funds from a consortium of global banks.
- The joint venture, FibreCo, will focus on leveraging a robust capital structure to enable large-scale deployment and upgrades, while adopting emerging technologies such as XGSPON, and meeting high ESG standards to minimize environmental impact.
- The funds from the transaction, amounting to €3.2bn, will be used by MasOrange to delever, aligning with its target mid-term leverage ratio of 2.75x, and the venture is expected to significantly contribute to Spain's digital infrastructure and climate goals, enhancing service quality for millions of customers.
