Orange and Telefonica reach an agreement that will boost fiber optics in Spain

Laurent Paillassot, CEO of Orange, and Jose Maria Alvarez-Pallete; President of Telefonica

Orange and Telefonica have reached a new commercial agreement for wholesale access to Telefonica's fiber optic network, this agreement is an extension that they have already signed since 2016, whereby Orange could continue to access the connections in which Telefonica has no regulatory obligations to provide an indirect access service to its fiber optic.From Orange they state that the company's fiber investment plans remain unchanged with this agreement, “which it gives us the ability to optimize our deployment ».Orange invested in Spain a total of 1,115 million euros in 2017-which represents 21% of its annual income of 5,371 million euros-, destined fundamentally, to the development of new 4G high speed and fiber optic networks. Related

With this agreement, Orange and Telefonica reinforce their mutual commitment to maintain an intense long-term wholesale relationship in areas where Orange does not plan to deploy its own fiber. Orange guarantees wholesale revenues throughout the entire Telefonica footprint (both regulated and unregulated area) during the next few years in exchange for competitive prices in the area without obligations.

«As always-Anaden from Orange-this alliance maintains our access to the entire Telefonica footprint in addition to the homes of our own deployment. We will continue to deploy intensely, taking advantage of the synergies that will allow us to migrate to our customers to own network ».

benefits for customers

When asked about the reasons for this agreement, the same sources point out that «it is to guarantee price stability in areas without obligations to cover the coverage gaps of our ongoing deployment» .In fact, the agreement allows Orange to have an alternative to its co-investment agreements with other operators.

The agreement between Orange and Telefonica, based on long-term purchase commitments, values the synergies that are generated when Orange accesses the Telefonica network, which increases its degree of use and, therefore, the efficiency of deployment and optimization of investment for both companies.

The collaboration between Orange and Telefonica will also result for the benefit of consumers, who will have within their reach an improvement of coverage and alternatives in new generation networks nationwide and, consequently, a greater and faster availability of services associated with the digital economy.

Orange's fiber network already reaches 12 million homes, which reaffirms Orange's unquestionable commitment to fiber deployment in Spain. Thus, only months after advancing 2018 its Aiming to cover 14 million properties with FTTH technology, Orange accelerated its deployment, extending up to a total of 2,000 million its total investment in fiber in Spain, which will allow it to reach 16 million homes with this technology in 2020.

Spanish fiber

As noted in Nobbot Manuel Sanchez Malagon, Director of Network Planning in Orange Spain, « Spain is the paradigm of the European country with the highest fiber and elunic connectivity that plans to reach almost 100% of households in 2020 with this technology. This situation of privilege is due, above all, to the two large operators who have now signed this agreement and who have decided to invest massively in the development of fiber optic: Orange and Telefonica ».

In the excellent situation of fiber in Spain, the ropes of joint investment between operators have played a fundamental role. «This is the most efficient and intelligent way to make fiber deployments, because reduce costs and time until commissioning, ”says Sanchez Malagon.Orange has been the most active operator to build agreements with other operators, since the beginning of 2013 with Telefonica, in 2014 with Vodafone and agreements with MasMovil and Euskaltel in 2017.

Today, thanks to the activity of the operators and their collaboration, Spain is the number one European country in fiber deployment and is among the top five in the world.

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