In its second major announcement in a matter of days, Chilean telecoms giant Entel has said it plans to sell the assets of its fibre optic business but continue offering internet services.
The business, which provides services to homes, will be sold to local company ON*NET Fibra in a deal worth $358 million. The agreement is part of a deal that will enable Entel to continue offering internet services for residences on ON*NET's network.
ON*NET Fibra deploys and operates the first wholesale fibre optic infrastructure network in Chile. This is described as an open and neutral network that can be used by all current and future operators.
ON*NET Fibra was launched in July 2021 when KKR, a leading global investment firm, purchased a 60% stake in Telefónica's fibre optic network in Chile.
Entel was quoted as saying: "By selling our network, rather than leaving the fixed market, we are increasing coverage rapidly to offer our internet services to the home at efficient costs and without the need to invest the sums required for a fibre deployment with this coverage.”
Once the deal is approved by Chile's economic regulator, probably in the first half of 2023, ON*NET Fibra is expected to reach more than 4.3 million homes in 2024. Entel has operations in Chile and Peru and has more than 20 million mobile subscribers.
Last week Entel Corp said it was planning to integrate Ericsson’s Private 5G solution within its offering, and partner with communications service providers to deliver it.