Telefonica has sold a major stake in its network infrastructure down in the Latin American nation of Colombia. The global investors over at KKR have put together a joint venture that will establish the country's first nationwide open access fiber network.
The new company will offer capacity and services to all ISPs in Colombia, with Telefonica obviously being their initial anchor customer. They plan to expand Telefonica's existing coverage from 1.2M homes up to 4.3M homes by the end of 2024, extending into 87 municipal areas. That infrastructure will also go a long way toward supporting 5G deployments over time.
KKR will own 60% of the new company, with Telefonica holding the other 40%. The deal puts the entity's value at $500M, which suggests KKR's investment is around $300M or so. It's a similar arrangement to what KKR and Telefonica have set up to establish ON*NET Fibra down in Chile.
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