Vodafone has signed a five-year deal to access Telefónica's fibre optic network in Spain.
The deal will enable Vodafone to “significantly extend” the areas in which it can offer ultra-fast broadband and Television services, the two companies said.
The UK-based operator’s fixed network in Spain covers 15.8 million premises currently, of which 10.1 million are on its own network.
It has 14.5 million mobile customers and 3.1 million broadband subscribers in the country.
Telefónica said it had been “freed” of wholesale fibre access obligations in a number of areas, which boosted the popularity of its offering.
It described the deal as a “milestone” in its wholesale business strategy.
“This agreement… enables [Telefónica] to take a more active role in offering its wholesale services in an increasingly dynamic and innovative business environment, and with more alternatives, in terms of provision of services by other operators or by using models of co-investment and self-provision,” the Spain-based operator said in a statement.
It added that the synergies generated by the deal boosted the investment that both companies had made.
Financial details were not disclosed.
Spain added the largest number of FTTH/B subscribers in Europe between September 2015 and September 2016, according to data from the FTTH Council Europe.
The country increased subscriptions by around two million or 72 percent to 4.5 million during the period, while the number of homes passed by fibre grew by six million or 34 percent to 22.6 million.