The wholesale company will provide the infrastructure services so that Entel can offer its end customers broadband connectivity services to homes, SMEs and companies.
The transaction will provide additional fiber optic infrastructure to Chile’s leading wholesale network, increase competition in fiber optic services and promote high-speed connectivity to help achieve the zero digital divide throughout the country.
Entel agreed to sell substantially all the assets that make up the fiber optic infrastructure business line for the provision of Internet services to the home of the company in Chile to ON*NET Fibra, the first wholesale fiber optic infrastructure company, open and neutral in the country.
Likewise, as informed in an Essential Fact sent to the Financial Market Commission (CMF), as part of this transaction it was also agreed the signing of a Framework Agreement for Long-Term Fiber Optic Connectivity Services. This will allow Entel to continue offering Internet services for the home in the country, now over the wholesale company’s network.
Thanks to both operations, the technology and telecommunications company will receive a total amount equivalent to US $358 million.
By the end of 2022, Entel will reach 1.2 million homes passed (HP) with optical fiber in 47 communes of the country and it is expected that, as a result of this agreement, ON*NET Fibra will provide Entel with access to a total of 4.3 million HP in 2024 (an increase of 3.5x).
In addition, it was reported that the transaction, which was led by investment bank BNP Paribas, investment bank Santander and financial advisor Scotiabank, is subject to the approval of the National Economic Prosecutor’s Office (FNE), which is expected to occur within the first half of 2023.
After the closing of this transaction, ON*Net Fibra is expected to reach more than 4.3 million homes in 2024, distributed in 15 regions of Chile, from Arica to Porvenir. The agreement also considers that the fiber optic network acquired from Entel will become open access to create more competition in the market.
“In a highly competitive environment, this operation allows us to significantly strengthen our fiber optic coverage nationwide, which is a strategic focus of the company, in this case on a shared and high quality network, giving us almost immediate access, once the approvals are obtained and the integration is completed, to a coverage of 3.9 million homes in the past, to reach at least 4.3 million by 2024. With this, we will be able to give a strong boost to our offer to the home and business markets, especially small and medium-sized companies", said Büchi.
He also stressed that “by selling our network, rather than exiting the fixed market, we are increasing coverage rapidly in order to offer our Internet services to the home, at efficient costs, and without the need to invest the sums required to deploy fiber with this coverage. We will then be able to focus resources where we do make a difference, which is in the connection within homes, in the customer experience, in digital services and in our deployment of the best 5G network in the country”.
For his part, José Miguel Torres, CEO of ON*NET Fibra, said that “the transaction accelerates ON*Net Fibra’s mission to provide an open and neutral fiber optic infrastructure that promotes competition in the market for the benefit of families and businesses across the country. We are proud of this agreement with a company of Entel’s size and the trust it has placed in us. We are sure that the closing of this operation will mark an important step for the digital development of the country and the commitment to achieve the zero digital divide. Currently, fiber optic infrastructure is key to the digitalization of the country, as it is not only considered relevant for fixed connectivity, but also offers the highest speed, stability and security in data transmission for the mobile world, which makes it a fundamental factor for the successful deployment of the fifth generation network in the country (5G)”.
About ON*NET Fiber
ON*NET Fibra began operations in Chile in July 2021, deploying and operating the first open and neutral wholesale fiber optic infrastructure wholesale network in the country.
Since its establishment in 2021, ON*NET Fibra has consolidated and created a leading wholesale fiber optic market in Chile that has driven greater competition in the market and helped reduce digital divides for more families and small businesses. This network is available for use by all current and future telecommunications operators in the country, whose mission is to provide greater access to broadband connection in Chile, expanding its network throughout the national territory to digitize and benefit consumers, businesses and families throughout the country.
ON*Net Fibra is 60% owned by infrastructure funds managed by entities related to KKR, a leading global investment firm, and 40% owned by Telefónica.
NEXO LatAm (www.nxlatam.com), a new digital infrastructure platform in Latin America led by long-time industry executive Mariano de Beer, will support ON*NET Fibra and KKR in this initiative. Nexo Latam’s mission is to accelerate the deployment of fiber optic infrastructure, towers, small cells and edge computing in the region.
www.linkedin.com/company/nexo-latam/
About Entel
Entel is a company with 58 years of experience, a leader in technology and telecommunications with operations in Chile and Peru, countries where it has more than 20 million mobile customers and consolidated annual revenues of Ch$2,460,119 million as of December 2021.
The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations. In both countries it provides wholesale and call center services.
In each of these services it delivers simple and efficient experiences, supported by a robust, state-of-the-art infrastructure and a strong brand image and customer service.
25 Oct, 2022
The wholesale company will provide the infrastructure services so that Entel can offer its end customers broadband connectivity services to homes, SMEs and companies.
The transaction will provide additional fiber optic infrastructure to Chile’s leading wholesale network, increase competition in fiber optic services and promote high-speed connectivity to help achieve the zero digital divide throughout the country.
Entel agreed to sell substantially all the assets that make up the fiber optic infrastructure business line for the provision of Internet services to the home of the company in Chile to ON*NET Fibra, the first wholesale fiber optic infrastructure company, open and neutral in the country.
Likewise, as informed in an Essential Fact sent to the Financial Market Commission (CMF), as part of this transaction it was also agreed the signing of a Framework Agreement for Long-Term Fiber Optic Connectivity Services. This will allow Entel to continue offering Internet services for the home in the country, now over the wholesale company’s network.
Thanks to both operations, the technology and telecommunications company will receive a total amount equivalent to US $358 million.
By the end of 2022, Entel will reach 1.2 million homes passed (HP) with optical fiber in 47 communes of the country and it is expected that, as a result of this agreement, ON*NET Fibra will provide Entel with access to a total of 4.3 million HP in 2024 (an increase of 3.5x).
In addition, it was reported that the transaction, which was led by investment bank BNP Paribas, investment bank Santander and financial advisor Scotiabank, is subject to the approval of the National Economic Prosecutor’s Office (FNE), which is expected to occur within the first half of 2023.
After the closing of this transaction, ON*Net Fibra is expected to reach more than 4.3 million homes in 2024, distributed in 15 regions of Chile, from Arica to Porvenir. The agreement also considers that the fiber optic network acquired from Entel will become open access to create more competition in the market.
“In a highly competitive environment, this operation allows us to significantly strengthen our fiber optic coverage nationwide, which is a strategic focus of the company, in this case on a shared and high quality network, giving us almost immediate access, once the approvals are obtained and the integration is completed, to a coverage of 3.9 million homes in the past, to reach at least 4.3 million by 2024. With this, we will be able to give a strong boost to our offer to the home and business markets, especially small and medium-sized companies", said Büchi.
He also stressed that “by selling our network, rather than exiting the fixed market, we are increasing coverage rapidly in order to offer our Internet services to the home, at efficient costs, and without the need to invest the sums required to deploy fiber with this coverage. We will then be able to focus resources where we do make a difference, which is in the connection within homes, in the customer experience, in digital services and in our deployment of the best 5G network in the country”.
For his part, José Miguel Torres, CEO of ON*NET Fibra, said that “the transaction accelerates ON*Net Fibra’s mission to provide an open and neutral fiber optic infrastructure that promotes competition in the market for the benefit of families and businesses across the country. We are proud of this agreement with a company of Entel’s size and the trust it has placed in us. We are sure that the closing of this operation will mark an important step for the digital development of the country and the commitment to achieve the zero digital divide. Currently, fiber optic infrastructure is key to the digitalization of the country, as it is not only considered relevant for fixed connectivity, but also offers the highest speed, stability and security in data transmission for the mobile world, which makes it a fundamental factor for the successful deployment of the fifth generation network in the country (5G)”.
About ON*NET Fiber
ON*NET Fibra began operations in Chile in July 2021, deploying and operating the first open and neutral wholesale fiber optic infrastructure wholesale network in the country.
Since its establishment in 2021, ON*NET Fibra has consolidated and created a leading wholesale fiber optic market in Chile that has driven greater competition in the market and helped reduce digital divides for more families and small businesses. This network is available for use by all current and future telecommunications operators in the country, whose mission is to provide greater access to broadband connection in Chile, expanding its network throughout the national territory to digitize and benefit consumers, businesses and families throughout the country.
ON*Net Fibra is 60% owned by infrastructure funds managed by entities related to KKR, a leading global investment firm, and 40% owned by Telefónica.
NEXO LatAm (www.nxlatam.com), a new digital infrastructure platform in Latin America led by long-time industry executive Mariano de Beer, will support ON*NET Fibra and KKR in this initiative. Nexo Latam’s mission is to accelerate the deployment of fiber optic infrastructure, towers, small cells and edge computing in the region.
www.linkedin.com/company/nexo-latam/
About Entel
Entel is a company with 58 years of experience, a leader in technology and telecommunications with operations in Chile and Peru, countries where it has more than 20 million mobile customers and consolidated annual revenues of Ch$2,460,119 million as of December 2021.
The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations. In both countries it provides wholesale and call center services.
In each of these services it delivers simple and efficient experiences, supported by a robust, state-of-the-art infrastructure and a strong brand image and customer service.
The wholesale company will provide the infrastructure services so that Entel can offer its end customers broadband connectivity services to homes, SMEs and companies.
The transaction will provide additional fiber optic infrastructure to Chile’s leading wholesale network, increase competition in fiber optic services and promote high-speed connectivity to help achieve the zero digital divide throughout the country.
Entel agreed to sell substantially all the assets that make up the fiber optic infrastructure business line for the provision of Internet services to the home of the company in Chile to ON*NET Fibra, the first wholesale fiber optic infrastructure company, open and neutral in the country.
Likewise, as informed in an Essential Fact sent to the Financial Market Commission (CMF), as part of this transaction it was also agreed the signing of a Framework Agreement for Long-Term Fiber Optic Connectivity Services. This will allow Entel to continue offering Internet services for the home in the country, now over the wholesale company’s network.
Thanks to both operations, the technology and telecommunications company will receive a total amount equivalent to US $358 million.
By the end of 2022, Entel will reach 1.2 million homes passed (HP) with optical fiber in 47 communes of the country and it is expected that, as a result of this agreement, ON*NET Fibra will provide Entel with access to a total of 4.3 million HP in 2024 (an increase of 3.5x).
In addition, it was reported that the transaction, which was led by investment bank BNP Paribas, investment bank Santander and financial advisor Scotiabank, is subject to the approval of the National Economic Prosecutor’s Office (FNE), which is expected to occur within the first half of 2023.
After the closing of this transaction, ON*Net Fibra is expected to reach more than 4.3 million homes in 2024, distributed in 15 regions of Chile, from Arica to Porvenir. The agreement also considers that the fiber optic network acquired from Entel will become open access to create more competition in the market.
“In a highly competitive environment, this operation allows us to significantly strengthen our fiber optic coverage nationwide, which is a strategic focus of the company, in this case on a shared and high quality network, giving us almost immediate access, once the approvals are obtained and the integration is completed, to a coverage of 3.9 million homes in the past, to reach at least 4.3 million by 2024. With this, we will be able to give a strong boost to our offer to the home and business markets, especially small and medium-sized companies", said Büchi.
He also stressed that “by selling our network, rather than exiting the fixed market, we are increasing coverage rapidly in order to offer our Internet services to the home, at efficient costs, and without the need to invest the sums required to deploy fiber with this coverage. We will then be able to focus resources where we do make a difference, which is in the connection within homes, in the customer experience, in digital services and in our deployment of the best 5G network in the country”.
For his part, José Miguel Torres, CEO of ON*NET Fibra, said that “the transaction accelerates ON*Net Fibra’s mission to provide an open and neutral fiber optic infrastructure that promotes competition in the market for the benefit of families and businesses across the country. We are proud of this agreement with a company of Entel’s size and the trust it has placed in us. We are sure that the closing of this operation will mark an important step for the digital development of the country and the commitment to achieve the zero digital divide. Currently, fiber optic infrastructure is key to the digitalization of the country, as it is not only considered relevant for fixed connectivity, but also offers the highest speed, stability and security in data transmission for the mobile world, which makes it a fundamental factor for the successful deployment of the fifth generation network in the country (5G)”.
About ON*NET Fiber
ON*NET Fibra began operations in Chile in July 2021, deploying and operating the first open and neutral wholesale fiber optic infrastructure wholesale network in the country.
Since its establishment in 2021, ON*NET Fibra has consolidated and created a leading wholesale fiber optic market in Chile that has driven greater competition in the market and helped reduce digital divides for more families and small businesses. This network is available for use by all current and future telecommunications operators in the country, whose mission is to provide greater access to broadband connection in Chile, expanding its network throughout the national territory to digitize and benefit consumers, businesses and families throughout the country.
ON*Net Fibra is 60% owned by infrastructure funds managed by entities related to KKR, a leading global investment firm, and 40% owned by Telefónica.
NEXO LatAm (www.nxlatam.com), a new digital infrastructure platform in Latin America led by long-time industry executive Mariano de Beer, will support ON*NET Fibra and KKR in this initiative. Nexo Latam’s mission is to accelerate the deployment of fiber optic infrastructure, towers, small cells and edge computing in the region.
www.linkedin.com/company/nexo-latam/
About Entel
Entel is a company with 58 years of experience, a leader in technology and telecommunications with operations in Chile and Peru, countries where it has more than 20 million mobile customers and consolidated annual revenues of Ch$2,460,119 million as of December 2021.
The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations. In both countries it provides wholesale and call center services.
In each of these services it delivers simple and efficient experiences, supported by a robust, state-of-the-art infrastructure and a strong brand image and customer service.