Telefónica, CDPQ to create fiber network joint venture

Spain's Telefónica SA and private equity firm Caisse de dépôt et placement du Québec have agreed to create Fibrasil Infraestrutura Fibra Otica SA, or FiBrasil, a fiber network joint venture.

Telefónica and CDPQ will each own a 50% holding in the joint venture under a co-control governance, according to a March 2 press release. Telefónica's 50% stake will be held by units Telefônica Brasil and Telefónica Infra SLU, who will own 25% each.

CDPQ will also invest up to 1.8 billion reais in FiBrasil.

The companies aim to build and operate an independent optical fiber wholesale network in Brazil. FiBrasil will deploy and operate fiber-optic networks in certain cities in the country outside Sao Paulo and offer fiber-to-the-home wholesale access to telecom operators.

As of March 2, US$1 was equivalent to 5.72 reais.