Telefonica Group and Canadian investment firm Caisse de depot et placement du Quebec (CDPQ) have confirmed that they have reached an agreement for the construction, development and operation of a neutral, independent fibre-optic wholesale network in Brazil, with the creation of FiBrasil Infraestrutura e Fibra Otica (FiBrasil).
CDPQ will invest up to BRL1.8 billion (USD317.8 million) in the joint venture, comprising both primary and secondary payments. Upon completion of the transaction, Telefonica Group and CDPQ will each hold 50% in FiBrasil under a ‘co-control governance model’. Telefonica’s 50% participation will be held through Telefonica Brazil (Vivo) and Telefonica Infra, the group’s infrastructure arm, with each business holding a 25% stake. The deal is subject to regulatory approval and closing is expected to occur in the second quarter of 2021.
Operating as a neutral wholesale company, FiBrasil is set to deploy and operate fibre-optic networks in selected mid-sized cities across Brazil outside the state of Sao Paulo, and to offer fibre-to-the-home (FTTH) wholesale access to all telecoms providers, enabling them to offer these services to their end users. Starting with a portfolio of 1.6 million homes passed (contributed by Telefonica Brasil), FiBrasil aims to expand its network to reach around 5.5 million homes passed within four years.