March 03, 2021 | Nathalie Bannerman
The Telefónica group and the global investment group, Caisse de dépôt et placement du Québec (CDPQ), have announced the construction of a new wholesale fiber network in Brazil.
Named FiBrasil Infraestrutura e Fibra Ótica SA (FiBrasil), the new network will be a neutral and independent optical fiber backbone that will be built and operated jointly by the two companies.
Upon completion, Telefónica Group and CDPQ will each own 50% of FiBrasil using a co-control governance model. The 50% stake in Telefónica Group will be held by Telefónica Brazil (Vivo) and Telefónica Infra, the infrastructure unit of the company, each holding a 25% stake.
“We are very enthusiastic about the idea of partnering with the CDPQ, with whom we share the ambition to accelerate the deployment of fiber in Brazil, by contributing to Vivo’s growth plans and the country’s digital development”, said Ángel Vilá, COO at Telefónica. Group.
“We are delighted to put our FTTH expertise and commercial capabilities at the service of this partnership, by partnering with the CDPQ as a key element of success, by strengthening our value proposition and by strengthening our growth strategy. “
Once online, FiBrasil will deploy and operate fiber optic networks in selected cities in Brazil outside of Sao Paulo, and offer wholesale fiber-to-the-home (FTTH) access to all service providers.
Starting with a portfolio of 1.6 million households transited by Telefônica Brasil, FiBrasil aims to reach 5.5 million households transited within 4 years.
La Caisse is investing approximately 1.8 billion reais ($ 315 million) in this joint venture, which will provide a fully funded business plan to meet the company’s deployment objectives.
“CDPQ is delighted to establish a joint venture with Telefónica, one of the world’s leading telecommunications service providers, to accelerate the delivery of next-generation fiber-optic infrastructure to more than 5 million Brazilian households,” said added Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure, CDPQ.
“This transaction is an opportunity to further diversify our infrastructure portfolio and demonstrates La Caisse’s continued interest in Brazil and the greater Latin America region, where we see opportunities in a variety of sectors. “
The strong investment capacity and experience of the CDPQ in the management of infrastructure investments as well as the technical capacities and experience of Telefónica in the deployment and operation of fiber optic networks will create strong synergies for this new business. In addition, FiBrasil will benefit from Vivo as a primary customer.
Vivo will be FiBrasil’s flagship tenant, consolidating itself as the country’s leading convergent operator. efficient funds, ”said Christian Gebara (pictured), CEO of Telefônica Brasil.
“Fiber will be a key driver for Vivo’s future revenue growth to reach at least 24 million HP by the end of 2024, and FiBrasil will be Vivo’s platform to extend coverage to cities. completely new. “
The transaction is expected to close in the second quarter of 2021, subject to regulatory approval.