Telefonica Brasil explores potential acquisition of fibre provider Vero

Details: Manny Pham; Category: Operators; 03 November 2026; 440 views

Telefonica Brasil, which operates under the Vivo brand, has confirmed preliminary talks with shareholders of Brazilian fibre broadband provider Vero, as it looks to expand its fixed-line footprint amid consolidation in the country's broadband market.

In a market announcement on 30 October, Telefonica said discussions were non-binding and that no decision had been made on a potential transaction. The companies have not agreed on a deal structure, terms or conditions, and Telefonica said there was currently no material information requiring further disclosure.

An acquisition would give Vivo access to Vero's fibre network, which passes around 7.2 million homes and serves approximately 1.3 million broadband customers across nine states in southern, south-eastern and central-western Brazil. The deal would strengthen Vivo's presence in regional markets and give it an opportunity to add customers without having to build an equivalent network from scratch.

Vivo already has a substantial fixed broadband operation, with its fibre network passing around 32 million homes and serving 8.2 million customers as of the second quarter of 2026. Adding Vero would expand its reach and potentially strengthen its ability to bundle fixed broadband with mobile services.

However, Vero also brings financial challenges. The provider had net debt of around R$3 billion (US$550 million) at the end of June, equivalent to 3.3 times its EBITDA. Its broadband customer base has also come under pressure from competition and tighter credit controls, while S&P recently revised its credit rating outlook to negative.

The potential deal comes as Brazil's fixed broadband market undergoes consolidation. In October, rival operator Claro completed its acquisition of a 72.83% controlling stake in regional fibre provider Desktop, giving it control of a network that expands its position in the country's fixed broadband market.

Vivo previously held discussions over a possible acquisition of Desktop in 2024, but the parties failed to agree on a price. Claro subsequently agreed to buy the company, completing the transaction in October 2026.

For Telefonica, Vero could offer another route to expanding its fibre footprint and competing more effectively with Claro and regional providers. The talks remain at an early stage, however, and any transaction would require further agreement between the parties.