Over the past few years, Vodafone along with Telefónica has launched a large-scale partnership to improve the fiber optic network in Spain with the help of *Open Fiber*. Such partnership reflects a general tendency observed in telecommunication market when companies aim to maximize their infrastructure utilization as well as offer more services in cooperation.
The pair formed last in 2021 by Vodafone and Telefónica is aimed at developing and organizing the whole fibre optic across Spain. This intervention is important because fiber optic system is the core of today’s advanced communication systems as compared to conventional copper-wired broadband network. As consumers turn to fast internet services due to the developing digital services, teleworking, and streaming services, fiber networks must grow to satisfy the demand and compete.
There are many reasons why this association has been developed, one of which is to spread the large expenses involved in establishing fiber optic networks. Establishing a fiber network across the country required huge investment committed mainly on the cables, nodes, and the system. Thus, Vodafone and Telefónica can decrease such costs and insulate the companies against certain financial risks while ramping up the deployment of fiber optic infrastructures. This way, each of the firms is capable to use existing resources and staff to the maximum, avoiding waste of funds and time.
Combined, Open Fiber is a new and drastic turn in the competition of the Spanish telecommunication industry. Rather than two companies spending their capital individually to construct their respective fiber networks, which might result in re-duplication of segments, and hence high costs, the joint venture allows for a more systematic and efficient duet. It not only have distinct advantages to the companies that are involved in the undertaking but also has end-user advantages.
