Telxius will initially manage 15,000 towers
Spanish telecom operator Telefonica has created a new company called Telxius, which will manage certain infrastructure assets of the group. The establishment of the new global company is part of the optimization strategy for the company’s asset portfolio.
In the first phase, Telxius will manage approximately 15,000 telecommunication towers in Spain and other countries, as well as the Telefonica Group´s international network of 31,000 kilometers of submarine fiber optic cable, including SAM-1, a submarine cable that connects the United States with Central and South America.
With this move, the telco is seeking to monetize its assets and obtain new resources to reduce debt and boost investments.
Telefonica appointed Alberto Horcajo as the CEO of Telxius. The executive currently serves as CFO of its Brazilian subsidiary.
“Telxius will enable the management of the Telefónica Group’s infrastructure on a global scale with a more specialized and focused approach, with the aim of increasing the services provided to other operators, improving the return on capital invested and allowing Telxius to participate more actively in the growth opportunities that exist in the industry, including the possibility of incorporating third party assets,” Telefonica officials said in a statement.
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Telefonica currently manages a high capacity fiber optic cable network which connects more than 40 countries in Europe and the Americas, including the United States.
The European telco also said that it expects to create new companies in the coming months which will be gradually integrated into Telxius. According to previous press reports, Telxius will have a market valuation of between 5 billion euro and 6 billion euro.
The company is also considering an initial public offering of its newly created firm Telxius. In a regulatory filing, the telco said that it was analyzing different strategic alternatives, among which is a possible initial public offering.
Telefonica ended September with a total of 321 million subscribers in its global operation. Mobile subscribers totaled 251.4 million at the end of the third quarter, up 11.6% year-over-year.