(Bloomberg) — Telefonica SA has chosen a consortium of Vauban Infrastructure Partners and Credit Agricole Assurances SA as partners for a fiber broadband roll-out in rural Spain, the carrier said in a regulatory filing Monday.
Vauban and Credit Agricole Assurances will pay 1.02 billion euros ($1 billion) in cash for a 45% stake in the joint venture, known as Bluevia, valuing it at 2.5 billion euros, the Spanish carrier said.
The new partnership will be separate from Telefonica’s existing fiber network in Spain, which mainly serves urban areas. Bluevia will acquire 3.5 million premises already passed from Telefonica’s Spanish unit and will deploy an additional 1.5 million over the next two years.
Last year, Telefonica considered selling a stake in its main fiber unit before shelving the idea. Instead, it decided to create a new unit focused on rural and low-density areas, which will comprise existing fiber and new roll-outs.
Telecom infrastructure assets, such as cellular towers, broadband networks and data centers, are favored by pension and infrastructure funds in recent years as a way to access a stable, long-term revenue streams. For carriers, selling the assets entirely or partially can help raise funds to invest elsewhere, reduce the cost of capital or unlock share price value.
Telefonica has struck several deals with broadband networks in recent years, in markets including Chile, Brazil and Germany. The joint venture it owns in the UK with Liberty Global Plc is seeking a financial partner for its broadband network.
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