MásMóvil sells part of Euskaltel’s fiber access network

MásMóvil continues to consolidate its merger with Orange, getting rid of part of the debt as a necessary measure to comply with the agreement between both companies. Now the group sold part of Euskaltel’s access network to a consortium of companies to enhance the fiber network that is being deployed in the Basque Country, Galicia and Asturias.

The expansion of fiber optics in Spain has allowed it to be taken beyond the busiest urban centers, all with the efforts and investment of the operators. By 2025 these must cover 100% of the population with a broadband connection; a ultimatum that is inexorably approaching. 5G is one of the weapons to comply with the agenda, also fiber optics. Euskaltel is key for MásMóvil in the north of the country.

The MásMóvil Group, through Euskaltel, is expanding its fiber network in the Basque Country, Asturias and Galicia. To speed up the process and modernize existing connections, the group has sold its subsidiary EKT Cable, the installation company that was in charge of the deployment. Through this MásMóvil movement, an amount of 580 million euros is secured; of which 500 million are directed to alleviate its debt.

EKT Cable has been sold to a consortium of Basque companies called Bidasoa Agreggator. The company, in which the MásMóvil Group has a 49% stake (it has allocated the remaining 80 million of the debt to participate in the new company), will be the one in charge of accelerate fiber optic availability for Euskaltel, R and Telecable customers.

The MásMóvil Group assures that the sale of EKT Cable will improve fiber optic laying in the north of Spain; while reserves the right to exploit the extended network, will also guarantee its good state of conservation (in the words of MásMóvil). The fiber optic deployment under construction will provide Internet access for 1.1 million homes in the Basque Country, Asturias and Galicia.

With the movement, the MásMóvil group frees itself from the management of its cable subsidiary, obtaining a significant amount of money to alleviate its debt and without losing the exploitation rights of the future fiber network, now under construction (will also participate in the new society). We are still waiting for the formalization of the merger agreement between Orange and the MásMóvil Group itself: we will surely see more movements such as that of EKT Cable in order to improve the financial health of the business group. Gearrice