Investment firm KKR says it has signed an agreement with Telefónica Colombia, a subsidiary of Telefónica, to fund the creation of an independent entity that will build and operate a wholesale fiber network in Colombia. The agreement, valued at approximately $500 million, will see KKR acquire a majority stake in Telefónica’s existing fiber-optic network in the country, leading to KKR owning 60% of the resultant entity.
A local team in Colombia will manage the new entity but will draw on the collective expertise of the two main parties. KKR says the newly created entity will expand upon Telefónica Colombia’s existing footprint from approximately 1.2 million homes to, “at minimum,” 4.3 million homes by the end of 2024. The fiber infrastructure will cover at least 87 municipal areas in Colombia, with more than half consisting of underserved areas, according to KKR and Telefónica. The network will provide fiber access to internet and related services providers, including Telefónica. It also will be used to support the delivery of additional services, such as 5G mobile.
KKR and Telefónica recently signed a similar deal to create the Chilean wholesale fiber network services provider ON*NET Fibra. “We are thrilled to, once again, be working with Telefónica to provide greater broadband access to those who need it, and to be doing so in Colombia, a country we believe is primed for significant growth ahead and which serves as an attractive destination for investors,” said Waldemar Szlezak, senior leader of KKR’s infrastructure investment team. “This new venture in Colombia, along with ON*NET Fibra de Chile, demonstrates the potential to invest in innovative financing and growth strategies to promote digital infrastructure in Latin America.”
Alfonso Gómez Palacio, CEO of Telefónica Spanish-speaking Latin America, added that “the agreement with KKR will accelerate the deployment of fiber optic in Colombia at an unprecedented rate, in a market that has shown enormous potential in the last year. In addition, fiber will create opportunities for thousands of homes and businesses that see digitalization as an opportunity for development. This is one more step by our company to lead FTTH services in Latin America.”
The agreement is subject to customary regulatory approvals. The two signees did not reveal when they expect the deal to close.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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