Telefónica has sold 45% of its rural fibre optic business for over one billion euros

Bluevia will deploy 1.5 million fibre optic units over the next two years in areas where Telefónica still has clients with copper cable connections. The firm wants to close down its retail copper network in 2024.

Teléfonica says the Bluevia network will be rolled out in rural areas where there is little overlap with other operators and will provide wholesale services to other operators.

Teléfonica España will hold 30% of Bluevia’s capital, and Teléfonica Infra will hold 25%. The company will be run by former corporative strategy director Luis Rivero.

Emilio Gayo, the president of Telefónica España, said that this new venture will be a key enabler to speeding up fibre optic connections in rural areas, at a time when the copper cable network is being phased out.

Telecommunications companies have been active in the mergers and acquisitions market in Spain in the past week. On Saturday MásMóvil and Orange announced that they have agreed to merge, if the move is approved by the competition authorities.

Previously, the operator run by Meinrad Spenger had sold 51% of a company with 1.2 million homes in Euskatel’s access network to a group of Basque shareholders in an operation worth 580 million euros.