Spanish fibre business Onivia expands coverage of its rural fibre network
MADRID, 20 SEPTEMBER 2022 – Onivia, Spain’s first independent fibre network operator, has announced the acquisition of an additional half a million homes from MASMOVIL. This transaction compliments Onivia’s growth plans, increasing its ultrafast broadband coverage in rural and urban communities in Spain, providing access to a total of over 3.6 million homes across the country.
The scale of this enlarged fibre-to-the-home (FTTH) network provides Onivia with access to the majority of homes in the municipalities where it operates, connecting more potential customers to the network.
Onivia’s national presence and more concentrated coverage in rural municipalities offers a more flexible and attractive bitstream service for both large and small internet service providers (ISPs). The Onivia network also provides retail customers with more choice and helps connect communities, supporting growth and innovation in all sectors of the economy.
MASMOVIL, Spain’s third largest ISP, will continue to use the fibre network to serve its own customers. Another major ISP will also be an anchor customer.
Oliver Bradley, Managing Director at Macquarie Capital said: “This transaction allows us, together with our partners, to expand our long-term commitment to grow Onivia’s network. We are using our flexible balance sheet capital to enable Onivia to extend its reach and play an even more important role in helping to eliminate the digital infrastructure gap between rural and urban areas of Spain. It is our belief that people and businesses, regardless of where they are located, should benefit from best-in-class digital connectivity.”
Jose Antonio Vázquez Blanco, Chief Executive Officer of Onivia, said “This acquisition reinforces Onivia’s position in the market as the largest neutral and independent fibre operator. We believe that there are great opportunities for growth in the Spanish telco market with increasing value and market competition in rural municipalities to reduce the digital divide in these areas.”
Onivia was formed when Macquarie Capital and Abrdn acquired a FTTH network with one million homes from MASMOVIL in 2019, providing greater choice for consumers in Spain’s five largest cities – Madrid, Barcelona, Valencia, Seville, and Malaga. In 2021, Onivia doubled in size following the acquisition of a majority stake in a rural FTTH business, connecting people and businesses in more remote parts of Spain. Daiwa Energy & Infrastructure, and more recently Arjun Infrastructure Partners, are also invested in the business to support its ongoing growth plans.
Demand for reliable ultrafast broadband in Spain is expected to continue to grow significantly over the next few years with the Spanish government setting an ambitious target that aims to provide 100 per cent of the Spanish population with access to internet speeds in excess of 100 Mbps by 2025.
This transaction is subject to customary closing conditions, including relevant Foreign Direct Investment (FDI) clearances in Spain.