Spain’s Telefonica has allied with the Canadian Fund Caisse de Depot et placement du Québec (CDPQ) to set up FiBrasil, an optic fibre giant that wull deploy and operate a FTTH network in Brazil, with access to all telco operators in the country.
Both partners will hold a 50 per cent stake in the new company with Telefónica dividing it into two 25 per cent parts in the hands of Telefónica Brazil (Vivo) and Telefónica Infra, the infrastructure unit.
CDPQ will invest around €268 million for its participation in the company that plans to reach 5.5 million FTTH passed homes and offices in four years in medium-sized cities outside of Sao Paulo State. Telefónica Brazil will provide 1.6 million passed homes out of the 15.7 million already passed in the country and will be the main client for FiBrasil,
With this operation, Telefónica is replicating its strategy in Chile where it has sold 60 per cent of its fibre optic network to the Fund KKR for €500 million through a new company InfraCo, which will be responsible of deploying the FTTH network in the country with Telefónica keeping 40 per cent of the new company.