FiBrasil, JV Between Grupo Telefónica and CDPQ, starts operations in Brazil

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FiBrasil (FiBrasil Infraestructura e Fibra Ótica S. A), a neutral fiber network created by Telefônica Brasil, Telefónica Infra – the infrastructure arm of Telefónica Group – and CDPQ – a global investment group – announced the kick-off of operations in the country.

FiBrasil is present in 34 cities (1.6 million households) at the launch of operations and by the end of 2021, it expects to cover 500,000 additional households.

Telefónica Group and CDPQ each own a 50% stake of FiBrasil, in a co-controlling governance model. The shareholding of Telefónica Group is equally divided between Telefônica Brasil (Vivo) and Telefónica Infra. The new company will have a fully independent team, led by a CEO and an executive body, counting more than 150 employees.

Starting with a coverage of 1.6 million households, FiBrasil is expected to bring fiber infrastructure to 5.5 million homes and businesses over the next four years and will provide access to a high-speed fiber neutral network in a wholesale model for companies that want to expand their coverage throughout Brazil. As part of its business model, FiBrasil allows its clients to reach their customers with lower capital requirements and shorter time-to-market, enabling them to replace the risk of a high initial investment for a less capital intensive model, speeding up fiber coverage in a country of continental dimensions. Neutral fiber networks represent a concrete opportunity to accelerate the population’s access to ultra-high-speed internet to all locations in Brazil.

Vivo will be FiBrasil’s first wholesale customer, with a 10-year contract, and will rely on the infrastructure of FiBrasil to increase its expansion plan for fiber network in the coming years. With FiBrasil, Vivo will reach 24 million Brazilian households by the end of 2024. FiBrasil, as a neutral wholesale operator, will have its network open to be also accessed by other telecom companies.

 


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