The Vodafone and Movistar Agreement That Changes Everything: Their Customers Don't Know What to Do

March 1, 2025 marked an important milestone in the telecommunications sector in Spain. Vodafone and Movistar began their fiber optic partnership, which promises to transform the telecommunications landscape in the country. This agreement has created many expectations among users, who don't know exactly what to expect from this alliance.

The agreement consists of the creation of a new fiber optic company, known by the brand Fiberpass. This partnership will be mostly controlled by Telefónica (Movistar), which will have 63% of the shares. Meanwhile, Vodafone owns the remaining 37%.

The new fiber network will cover approximately 3.65 million real estate units (3.65 millones de unidades inmobiliarias), representing 12% of Telefónica's national network in Spain. This alliance marks an important change in how both companies will offer their internet and telecommunications services.

The new fiber partnership not only represents an investment in infrastructure but also a customer base. Fiberpass will start with 1.4 million customers (1,4 millones de clientes), which means a 38% market penetration. This translates to a considerable number of households benefiting from greater coverage and quality of the fiber optic network.

However, many Vodafone and Movistar customers still don't know how this alliance will affect their current services.

How It Affects Vodafone and Movistar Users

The fiber agreement between Vodafone and Movistar raises several questions for their customers. First, users of both companies will benefit from a higher quality and coverage fiber optic network. However, the way the services of the two companies will be integrated could generate some confusion.

Users of these operators will have to wait for the change to be finalized. Especially to understand how the packages will be offered and if their prices will be adjusted in any way. Additionally, the possibility of a third investor entering the joint venture could change the dynamics of the partnership and the available services.

According to the agreement, the goal is that once the transaction is completed, a third investor will join the joint venture and take on 40% of the partnership. This will allow Movistar to maintain its control position in the new fiber company. Meanwhile, Vodafone would have 10%.

This decision is designed to provide stability to the partnership and ensure that strategic decisions continue to be made by Telefónica. But it also opens the door to new partners who could bring capital and new ideas to the business.

The Economic Projections of the Fiber Partnership

From an economic standpoint, the Vodafone and Movistar agreement has great expectations. The forecast is that the new joint fiber partnership will achieve a gross operating result of 125 million euros three years after its creation.

This result will largely depend on how quickly the fiber network is implemented. But also on how customers respond to the joint service offering.