BBVA Advises Telefónica in Establishing a Joint FTTH Network with Vodafone Spain

BBVA Corporate & Investment Banking (BBVA CIB) has served as the Sole Financial Advisor to Telefónica on the creation of a national brownfield Fiber-to-the-Home (FTTH) network, which will be owned by Telefónica and Vodafone Spain.

Telefónica and Vodafone Spain have signed a binding agreement to create a FiberCo entity that will operate a national brownfield FTTH network, covering approximately 3.6 million FTTH Homes Passed. Under the agreement, Telefónica will retain a 63% stake in the new company, while Vodafone Spain will hold a 37% stake.

At launch, the FiberCo will have an estimated initial customer base of 1.4 million Building Units Connected (BUCs), reflecting a take-up rate of around 40%. Following the close of the transaction, Telefónica and Vodafone Spain intend to bring in a third-party investor, with Telefónica expected to maintain a majority stake in the company.

This strategic transaction reinforces BBVA’s position as a leading M&A advisor in the Telecommunications, Media, and Technology (TMT) sector. BBVA CIB’s unique execution capabilities have once again facilitated a successful transaction, underscoring the firm’s expertise in navigating complex, high-profile deals within the industry.

BBVA Corporate & Investment Banking provides clients with deep expertise and bespoke solutions across a range of sectors, including TMT. BBVA’s advisory role in this FiberCo transaction is the latest example of the bank’s commitment to supporting major infrastructure and telecommunications initiatives across Europe.