Digi Communications seeks to sell fibre network for developing mobile network in Spain

Romanian telecommunications operator Digi Communications (BVB: DIGI) is in advanced negotiations to sell 100% of its fibre optic network to the home (FTTH), which has been deployed 6.6 million homes in Spain in recent years, to a consortium led by Macquarie Capital, according to Expansion.com.

Digi turned into a serious threat for the leading fibre network operators in Spain - Vodafone, Masmovil and Movistar - since it cut the prices, forcing the others to follow the trend.

Digi’s fibre network is estimated at EUR 1 billion, and the Romanian telco would use the money to finance the development of its mobile operations in Spain, including by developing a proprietary mobile network.

Under a USD 120 million deal already reached with MasMovil, Digi will take over some assets in the mobile telco market that the former had to sell to meet regulatory requirements for the merger with Orange. Separately, Digi is using the mobile network of Movistar against an annual USD 40 million fee.

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