Telefonica may sell part of its FTTH network in Peru

Telecommunications company Telefonica, whose operations in Latin America are known under the ‘Movistar’ brand, is negotiating to sell part of its FTTH network in Peru. The information was reported on several specialized websites, including the Spanish economic newspaper ‘Cinco Dias’ web version

The news came after, in November 2020, Movistar Peru announced the creation of PangeaCO, a unit with which the company aims to expand fiber optic throughout the country, in order to close the digital gap. Likewise, apart from PanageaCO, another Telefónica Peru strategy related to this issue is called ‘Internet Para Todos’, and it focuses on connecting Andean communities or populated areas in Peru with mobile internet.

In addition to Peru, Telefonica has announced the sale of its fiber optic subsidiaries in several of the countries in which it operates in Latin America. In mid-July, Movistar Chile announced the start of ON* NET Fibra’s operations. It is a new wholesale company that will offer an open and neutral FTTH service and promote access to broadband offers. The company was created as a result of the transaction between Movistar Chile and the investment firm Kohlberg Kravis Roberts (KKR) for the subsidiary InfraCO, and its purpose will be the implementation of the first free access FTTH network in Chile.

Also in mid-July, Movistar Colombia announced an agreement, also with KKR, to build a new company, with the aim of bringing FTTH to about 90 Colombian cities in the next three years and covering 4.3 million HPs with this technology. 

In the case of Brazil, where Telefonica operates under the ‘Vivo’ brand, the company announced the start of FiBrasil’s operations, a neutral fiber optic operator created by Telefonica Bra<il, Telefonica Infra and the global investment group Caisse de dépôt et placement du Québec (CDPQ). According to the information that was reported, the new company expects to end 2021 with 500 thousand FTTH HPs. In addition, FiBrasil starts its operations with a coverage of 1.6 million homes, and is expected to deploy FTTH infrastructure in 5.5 million homes and businesses over the next four years. As officially reported by Telefonica, with FiBrasil, Vivo will reach 24 million FTTH HPs by the end of 2024. In addition, FiBrasil will give other telecommunications companies access to its network.