Telefónica has created a new company, Telxius, to hold certain infrastructure assets, including 15,000 cell towers in Spain and 31,000km of submarine fibre-optic cable.
More assets could be added to the new subsidiary in the coming months, the company said.
Telefonica’s move could lead to its infrastructure business being sold or floated on the stock exchange. The infrastructure business could be worth €6 billion and possibly as much as €10 billion if overseas assets are included, according to a report in Reuters.
Alberto Horcajo has been appointed as CEO of Telxius, charged with manage the Telefónica Group’s infrastructure on a global scale with a more specialised and focused approach. The stated aims are to increase the services provided to other operators, improve the return on capital invested and allow Telxius to participate more actively in the growth opportunities that exist in the industry, including the possibility of incorporating third-party assets.
The infrastructure assets that will initially be brought together in Telxius will include approximately 15,000 Telefónica telecommunication towers in Spain and other countries, as well as the Telefónica Group´s international network of 31,000km of submarine fibre-optic cable, including South America-1 (SAm-1), a submarine cable that connects the United States with Central and South America.
Telefonica’s international fibre-optic network connects more than 40 countries in Europe and the Americas, providing services to Telefónica Group as well as other fixed and mobile operators, internet service providers and content providers.