In January 2025, MasOrange and Vodafone Spain reached a deal to establish FiberCo—set to become Spain’s largest independent nationwide fiber optic company
In sum – what you need to know:
FiberCo financing secured – MasOrange has raised 11 billion euros to fund the launch of FiberCo and optimize its own capital structure, with 4.7 billion euros at the FiberCo level and 6.25 billion euros at the MasOrange level.
Largest fiber network – FiberCo will combine over 12 million real estate units from MasOrange and Vodafone Spain, creating the largest independent nationwide fiber optic network in the country.
Strategic ownership structure – MasOrange will own 50% of FiberCo, Vodafone 10%, and the remaining 40% will be held by a financial investor.
MasOrange, the largest mobile operator in Spain by customers, has secured approximately 11 billion euros ($12.4 billion) in financing across two levels.
The financing includes up to 6.25 billion euros at the MasOrange level and 4.7 billion euros in infrastructure financing at the FiberCo level. In January 2025, MasOrange and Vodafone Spain reached an agreement to establish FiberCo—set to become Spain’s largest independent nationwide fiber optic company.
The Spanish operator noted that the financing package is backed by around 20 banks. The 4.7 billion euros raised for FiberCo has been structured to achieve an investment grade rating, highlighting the venture’s solid credit profile and the favorable outlook of the Spanish telecom infrastructure market, the telco said.
The telco added that all net proceeds from the FiberCo transaction will be used to repay debt at the MasOrange level, contributing to the group’s deleveraging strategy.
The additional 6.25 billion euro in financing will also enhance MasOrange’s capital structure, as the company aims to further reduce its weighted average cost of debt and extend its maturity profile.
The new FiberCo will integrate over 12 million real estate units from both MasOrange and Vodafone Spain. The network will be dedicated exclusively to serving MasOrange and Vodafone customers.
Under the terms of the agreement, each company will retain and operate the networks they contribute to FiberCo. MasOrange will hold a 50% stake in the venture, Vodafone will own 10%, and the remaining 40% will be controlled by a financial investor.
The transaction is expected to close by the end of the first half of 2025, subject to regulatory approvals.
MasOrange is Spain’s largest mobile operator, as a result of the merger between local carriers Orange Spain and Masmovil.
Last year, Orange and Masmovil completed a joint venture combining their operations after the clearance provided by the European Union and the Spanish government.
Earlier this month, the Spanish carrier has announced the deployment of what it claims to be the country’s first 5G Advanced (5G-A) network in Seville.
The first phase of deployment includes a cluster of nodes using mid and low bands, as well as 26 GHz spectrum and 140 megahertz of the 3.5 GHz band—the largest share of that spectrum held by any operator in Spain, the telco said.
MasOrange noted that its 5G Advanced network is a major enhancement of the current 5G Standalone (SA) network, developed in collaboration with Huawei. The network will not only boost connectivity but also introduce new capabilities such as network-based sensing, enhanced voice services and expanded support for Internet of Things (IoT) applications.
5G Advanced will also improve connectivity for drones and balloons, extending coverage to remote areas, which is critical in emergency situations or for drone deliveries. It also enhances support for private networks and includes native AI capabilities, the telco added.
In collaboration with Ericsson, MasOrange had begun modernizing its mobile network infrastructure, focusing on Open RAN (O-RAN) technology. This initiative is designed to transition the network into an open, software-defined architecture, improving operational efficiency and enabling greater flexibility in deploying new services. The telco previously highlighted that this move to O-RAN is expected to reduce costs, enhance customer experience and also create new opportunities for third-party service providers.
In April 2024, MasOrange said it planned to invest 4 billion euros in Spain. The telco said that the investment will be chiefly oriented for the deployment of 5G and fiber optic networks as well as new services.
