29m | Melanie Mingas
FiBrasil, the wholesale fiber network jointly owned by Telefónica Group and CDPQ, has been commissioned in Brazil.
FiBrasil was present in 1.6 million homes in 34 cities at the start of operations. By the end of 2021, it plans to cover 500,000 additional households.
Its first client, Telefônica Brasil’s Vivo, has signed a 10-year contract that will extend its reach to 24 million Brazilian households by the end of 2024.
Telefónica Group and CDPQ confirmed the company in March.
The Caisse invested approximately 1.8 billion reais ($ 315 million) in the joint venture. During the announcement, Emmanuel Jaclot, Executive Vice President and Head of Infrastructure of the CDPQ, said: 5 million Brazilian households.
“This transaction is an opportunity to further diversify our infrastructure portfolio and demonstrates the Caisse’s continued interest in Brazil and the wider region of Latin America, where we see opportunities in a variety of sectors,” continued Jaclot.
As part of its business model, FiBrasil enables its clients to reach their clients with lower capital requirements and a shorter time to market, enabling them to replace the risk of a high initial investment with a higher initial investment. less capital intensive model, accelerating fiber coverage in a country with continental dimensions. Neutral fiber networks represent a concrete opportunity to accelerate the population’s access to ultra high speed internet in all parts of Brazil.
Telefónica Group and CDPQ each hold a 50% stake in FiBrasil, in a co-control governance model. The 50% stake in Telefónica Group is owned by Telefónica Brazil (Vivo) and Telefónica Infra, the infrastructure unit of the company, which each have a 25% stake.
The new company has a fully independent team, headed by a CEO and an executive body, with more than 150 employees.