Vodafone Group confirms updated FTTH deal with Orange Espana in wake of ONO purchase

24 Jul 2014

UK-based Vodafone Group has announced the agreement between its Spanish subsidiary and local rival Orange Espana related to the rollout of fibre-to-the-home (FTTH) technology has been updated. The development comes in the wake of Vodafone Group completing its acquisition of Spanish cableco Grupo Corporativo ONO.

As noted in TeleGeography’s GlobalComms Database, in March 2013 Vodafone Spain and Orange Espana unveiled plans to invest up to EUR1 billion (USD1.361 billion) on the construction of a joint fibre-optic network. Under the terms of the agreement, both operators said they would each deploy street-level fibre in complementary geographies, and while the fibre would be owned independently it would share the same technical specifications to ensure compatibility as a single network, with each partner having guaranteed access to the whole infrastructure.

Now, Vodafone Group has confirmed that under the revised partnership the two companies have agreed: that the total number of homes and businesses to be jointly accessed by the two companies will still be three million in total; that both companies will collectively roll out FTTH to two million premises across Spain, and with the joint deployment already reaching 800,000 premises across twelve cities, the remaining 1.2 million premises to be connected by September 2015 will now be in areas where the ONO cable network is not present by September 2015. Further, as per the updated deal Vodafone Spain will provide Orange Espana with wholesale access to one million homes that are within the ONO network footprint; this commercial agreement, Vodafone Group said, will take the overall number of premises jointly accessed to the total of three million. Meanwhile, the amended agreement also provides a mechanism for both operators to provide each other with wholesale access to future FTTH deployments across Spain on a reciprocal basis.

Commenting on the development, Vodafone Group’s CEO of Europe, Philipp Humm, said: ‘Our partnership with Orange Espana complements our acquisition of ONO, ensuring a highly efficient deployment of high-speed broadband and bringing more competition to the Spanish market.’