Telefonica agreed to continue sharing its network infrastructure with Digi Communications’ Spanish subsidiary for the next 16 years, extending the pair’s existing contract that expires in January 2025.

In an announcement, Telefonica explained it will extend its provision of national roaming and RAN sharing services for Digi, while the partners’ fixed broadband wholesale agreement also stretched to an additional ten years.

Telefonica said the deal consolidates a “successful and trusting relationship” while helping it sustain a “long-term revenue stream”.

Telefonica added the arrangement reflects the “superior quality” of its national network infrastructure and “the confidence it generates in its ability to deliver high quality services over that infrastructure”.

Further, Telefonica said the deal enables Digi to benefit from “efficient and cost-effective use of its new spectrum assets”. Digi agreed to purchase sets of blocks of frequencies in the 1,800MHz, 2,100MHz and 3,500MHz bands from Masmovil for a total of €120 million last December, as part of latter’s push to get its merger with Orange approved.

In a separate, related statement, Digi explained the renewed partnership will allow it to execute an “efficient and timely transition of its mobile telephony business in Spain from an MVNO to MNO and to roll-out its own mobile network”.