FiBrasil known simply as InfraCo until now will focus on selected mid‑sized cities across Brazil outside the state of Sao Paulo, with Vivo to act as an anchor tenant. Telefónica’s side of the bargain will see it contribute a network passing 1.6 million premises on brownfield sites to the new entity. The extent to which the brownfield sites are a mix of copper and fiber connectivity was not stated by Telefónica. Nevertheless, this network will provide momentum as the new company aims to reach a goal of passing 5.5 million with full fiber by 2025. This rollout will reach a number of greenfield cities where Telefónica|Vivo will use the new infrastructure to launch services for the first time. Telefónica|Vivo hopes the JV will enable “faster” fibre‑to‑the‑premises (FTTP) rollout, “with lower capex” as it chases a target of passing 24 million homes by 2025.
The operating business reported it had passed 3.3 million homes by the end of the period (a 36.3% increase year‑on‑year). It now claims to have a FTTP network in place in 266 Brazilian cities, generating revenue of BRL 896m in Q4 (up 52%). Tier one will be wholly developed with Telefónica|Vivo capex and owned, operated, and managed by the OB itself. Tier two areas will be addressed through collaborations such as the FiBrasil venture, and the existing partnership with American Tower in Minas Gerais. The third tier is to be reached through a franchise model, with local network providers putting up the capex and licensing the Vivo brand, and the operator managing installation and operations.