Operators Vodafone Spain and MasOrange made progress on a deal to establish a joint fibre company in Spain, moving forward a collaboration first announced in mid-2024.

After agreeing initial terms on a fibre network sharing agreement in July, the companies stated they had now entered a binding agreement to integrate their existing fibre assets to develop a joint FTTH offering, claiming it will be the “largest and most developed” in Europe.

The network will span 12.2 million premises across Spain, serving more than 4.5 million customers combined.

In a statement, the companies projected annual EBITDA for FibreCo will reach approximately €480 million within three years.

Vodafone Spain-owner Zegona Communications also reiterated plans to introduce a third-party financial investor to retain a 40 per cent stake in FiberCo. Meanwhile Zegona Communications expects to hold 10 per cent ownership, with MasOrange retaining 50 per cent.

The deal is subject to customary regulatory approvals, with completion and an announcement of a third-party investor expected by the end of the first half of 2025.

Notably, Vodafone Spain also struck a deal with Telefonica in November 2024 to create a new fibre company covering 3.6 million premises in the country.

Eamonn O’Hare, chairman and CEO of Zegona Communications, hailed Vodafone Spain’s collaboration with MasOrange and the recent agreement with Telefonica as part of a wider transformation of the company’s fixed line strategy, which will “give guaranteed access to a future-proof all fibre national network” and “enable substantial cost savings across the business”.