KKR-Telefónica JV plans US$100mn in fiber roll-outs in Chile this year
On Net Fibra Chile, the fiber infra JV forged last year by US fund KKR and Telefónica, intends to invest around US$100mn in fiber deployments in Chile this year, CEO José Miguel Torres told BNamericas.
The company expects to reach 4mn of homes passed with fiber by year-end. According to the CEO, however, it is possible that the final number will be a little higher than that.
On Net is expanding at an average rate of 100,000 homes passed per month, compared to around 120,000 at its most direct competitor, Mundo.
It currently has 3.2mn of homes passed, according to Torres, the bulk of which were inherited from its JV partner and anchor client Telefónica.
The deal was closed last year and was valued at approximately US$1bn. Under the terms of the agreement, Telefónica holds a 40% stake in the business. No specific contractual or commercial advantage for the use of the network is given to the Spanish telco, insists Torres.
Apart from Telefónica, On Net has not yet signed any wholesale contract for the use of the network, but according to the CEO there are advanced talks with at least three providers that the JV anticipates concluding in the coming weeks.
On Net Fibra expects to end 2022 with 36,000km of fiber optics deployed, up from the current 32,000km, connecting 15 regions and 180 districts in the country.
MARKET OVERVIEW
According to the latest statistics released by regulator Subtel, Telefónica’s Movistar overtook Liberty Latin America’s VTR as the leading fixed broadband provider in the country, and Mundo overtook América Móvil’s Claro as the third player.
Liberty Latin America and América Móvil reached an agreement to merge the fixed operations of VTR and the mobile operations of Claro in Chile.
Subtel's numbers show Movistar had a 29.5% share of the fixed broadband market at end-2021, up from 26.8% in December 2020; while VTR had 28.5% (down from 33.8%), Mundo 14.3% (up from 10.8%), Claro 10.5% (down from 12.7%), GTD 7.8% (down from 8.0%) and Entel 6.5% (down from 6.7%).
Specifically in fiber broadband, Movistar leads with 46.9% of accesses, followed by Mundo with 24.9% and GTD with 13.1%.
KKR has a similar arrangement with Telefónica in Colombia. There, the JV On Net Colombia targets taking fiber optics to some 90 localities and to pass at least 4.3mn homes by the end of 2024.
The fund reported US$471bn in assets under management as of December 31, up 87% from a year earlier. The US group is currently in formal talks to buy Telecom Italia, TIM Brasil's parent.
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