Vodafone Spain and MasOrange agreed initial terms on a national fibre network sharing agreement, a proposal which includes the creation of a new company and plans to bring in third party investment.

In separate statements, the pair revealed a non-binding document outlining the key terms of the deal had been signed.

The operators aim to provide 11.5 million premises across Spain with access to “the most modern fibre optic network”.

Subject to final agreement and regulatory approvals, a new company will be created to run the project with plans to bring in a third-party equity investor.

Vodafone Spain-owner Zegona Communications said the initial ownership of the resulting company would be split based on their number of respective customers within the fixed network footprint.

After bringing in the investor, Vodafone Spain is expected to own 10 per cent, with 40 per cent allocated to the third party and the other 50 per cent held by MasOrange.  

Both players have recently had significant changes to their businesses. MasOrange is the result of a merger of Orange and Masmovil’s Spanish units completed in March, and Vodafone Spain was bought from Vodafone Group by Zegona Communications two months ago.