Fibex taps Venezuelan market for fiber rollout funds

Venezuelan fiber optic company Fibex Telecom has launched a public offering of bearer commercial papers for up to US$1.5mn to raise funds for the deployment of fiber projects.

Founded in 1998 as a pay-TV provider, Fibex Telecom began offering fiber-to-the-home broadband services in 2019 in Aragua, Lara, Barinas, Anzoátegui and Monagas states, later expanding to other regions with a 10,000km fiber optic network.

The company has benefited from the government’s pricing flexibility, the dollarization of the economy and Venezuela’s economic recovery.

As of the end of September 2024, Fibex had 185,000 active clients out of a total of 3.4mn fixed broadband subscribers, according to the latest figures from telecom regulator Conatel.

When including broadband subscribers, dial-up lines and mobile broadband users, the total number of internet subscribers in Venezuela reaches 4.05mn, reflecting 3.7% annual growth. State-owned company Cantv holds 46.4% of the market, followed by Digitel (13.7%), Intercable (10.5%), Matrix (5.62%) and NetUno among others. Fibex has a 3.13% market share.

Approximately 37.5% of Venezuela’s broadband market is provided via fiber optic connections.

According to the issuance proposal, Fibex Telecom detailed its planned investments for network expansion: US$764,000 for optical fiber, US$453,00 for network access point (NAP) boxes and US$172,000 for optical line terminals, along with additional expenses for other materials and labor costs.

The issuance is negotiable and payable in bolívares at the official exchange rate published by the Venezuelan central bank on the date of each transaction.