KKR and Telefónica have signed an agreement to establish the first open-access wholesale fiber optics company in Chile.
Under the agreement, KKR will acquire a majority stake in Telefónica Chile’s existing fiber optic network, making it open-access through a newly established independent Chilean company that will be controlled by KKR. Telefónica will hold a 40 percent stake in the business.
KKR said the newly formed enterprise will serve as Chile’s first wholesale digital infrastructure network, open to all current and future telecom operators in Chile. The business is planning to expand broadband coverage in Chile from 2 million households to at least 3.5 million households by 2023.
The deal is valued at $1 billion and is expected to close in first half 2021.
“We are excited to be working with Telefónica to create the first-ever open-access wholesale fiber network in Chile,” said Waldemar Szlezak, senior leader on KKR’s infrastructure inves
