KKR and Telefónica to Create Colombia’s First Nationwide Open Access Fiber Optic NetworkJuly 16, 2021
- Investment to accelerate ultra-fast digital connectivity to improve quality and coverage for Colombians nationwide, more than quadrupling Telefónica’s existing fiber optic network.
Newly formed company to offer open access wholesale connectivity with modern fiber optic technology for all internet service providers in
Colombia, including Telefónica.
KKR’s large direct investment in
Colombiawith a transaction value of approximately $500 millionaffirms its long-term commitment to the region.
On a mission to bring greater broadband access across
The company will be run independently by a local team in
Upon closing of the transaction, Telefónica’s existing fiber optic network will become open access and available for all internet service providers in
The network will utilize state-of-the art technology to deliver connection speeds up to 1000 times faster than conventional networks currently available to most Colombians, improving both quality and coverage. The investment will help to close the digital gap, facilitate new 5G connectivity, and provide access to telework, telehealth, and virtual education to far more Colombians than have it today.
“We are thrilled to, once again, be working with Telefónica to provide greater broadband access to those who need it, and to be doing so in
María Fernanda Suárez Londoño, a senior advisor to KKR, added, “More Colombian families and small businesses should have the ability to access ultra-high speed digital services. KKR’s investment will help bridge that gap by promoting competition and committing to expand the network in municipalities across
The transaction is valued at approximately
The new company will be controlled by KKR and will leverage the firm’s global experience in digital infrastructure and in operating and deploying fiber networks, including its existing fiber optic investments in ON*NET Fibra in
KKR is making the investment through its global infrastructure fund. KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world with a team of more than 50 dedicated investment professionals. The firm currently oversees approximately
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life, and reinsurance products under the management of The
Telefónica is one of the biggest drivers of the digital economy in the country, with revenues of
Telefónica is present in 50 cities and municipalities in the country with fiber optics, 210 with fixed broadband and 965 with 4G LTE mobile connectivity. Telefónica closed 1Q21 with a customer base of 19.9 million nationwide: 16.7 million mobile lines, 1.2 million broadband customers -366,000 with fiber-, 527 thousand pay TV and 1.4 million fixed lines in service.
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