Spain’s telecommunications scene is unfolding amid a wave of strategic moves and market readjustments. The major operators are shaping a new landscape through significant acquisitions and alliances. Orange and MásMóvil are at the center of a high-stakes discussion about consolidation, while Vodafone Spain has agreed to a 5,000 million euro purchase with the Zegona fund. The event signals a potential domino effect that could influence the fortunes of other players in the sector and attract noticeable state or sovereign capital interest.
Within this evolving environment, several operators in the sector have become focal points for potential deals as part of ongoing market restructuring. A new round of consolidation is consistently viewed as a strategic objective by investors, particularly regarding a possible acquisition by British fund Zegona, which could merge with Vodafone Spain following the large-scale transaction.
Finetwork, led by Óscar Vilda, has publicly stated its stance on independence. The executive has rejected any overtures from Zegona, underscoring that Finetwork remains intent on remaining autonomous while remaining open to hearing offers. The firm claims no contact has been made and reiterates a preference for continued self-managed growth, though it does not dismiss opportunistic discussions should the right terms arise.
Founded in Alicante, Finetwork has grown to serve around one million customers in the Spanish market. The founder and chairman, Pascual Pérez, holds the majority stake, with a minority share distributed among managers and other investors. The leadership emphasizes a national ownership model and a clear priority to stay independent without taking on new partners, as reported to El Periódico de España, part of the Prensa Ibérica group.
Discarded sales process
Last year Finetwork initiated a formal review to explore potential offers that could bring new partners or even a full sale of its equity. While three acquisition proposals emerged, the company ultimately paused those efforts and redirected its strategy toward accelerated organic growth. The leadership finished the lead generation phase and rolled out a new strategic plan focused on expanding independently in the coming years.
In parallel, Finetwork engaged KPMG to assist in securing financing to fund growth. Talks are underway with a number of banks and debt funds, with financing targets ranging from 70 to 90 million euros. The company reports strong growth that requires capital to sustain momentum. Projections call for customer numbers to rise from one million to 1.5 million in 2024 and to reach three million by 2027, with revenue expected to surge by roughly 122 percent to 270 million euros in the near term.
700 million network contract
Finetwork does not own a nationwide network. Instead, it operates through wholesale access arrangements with other groups and is in the process of divesting a smaller fiber network that serves about 115,000 homes with the plan to complete the sale within the year. At the same time, the company is negotiating a renewed wholesale agreement for network usage with major telcos.
Currently, Finetwork relies on the Vodafone Spain network. The existing contract is set to expire in April 2024, and talks are ongoing about a possible renewal that would also affect Vodafone. Telefónica has been in discussions with Orange and other independent operators with their own fixed networks, including Digi, Avatel and Onivia. The CEO states a preference for continuing with Vodafone, emphasizing that a renewal would reduce operational friction, while also noting readiness to adjust if better terms arise. The objective is to secure a network agreement within two months.
Finetwork estimates the contract’s value at 700 million euros over five years, assuming an annual cost of around 140 million euros. This anticipated revenue stream from network leasing has led industry observers and financial sources to speculate that Zegona might consider acquiring Finetwork as a defensive move to protect Vodafone’s position in Spain. Finetwork counts several large customers among its recent Spanish clientele.
Network conditions
At present, Finetwork operates as a distributor under a reseller arrangement with Vodafone. This means it must align its commercial tariffs with Vodafone while marketing under its own brand to its customers. Documents reviewed by Zegona in relation to Vodafone Spain’s acquisition discussion position Finetwork as a brand with growth potential in Spain alongside Vodafone, including cost-efficient options such as Lowi.
The company aims to transition from a distributor to a virtual mobile operator with a fully autonomous tariff structure and full control over its infrastructure use. Finetwork believes such a shift is feasible and would be mutually beneficial for all parties involved, according to statements from Óscar Vilda.
To satisfy growth ambitions, Finetwork needs access to a broader network footprint, with roughly 15 to 20 million network endpoints. Telefónica and Orange already meet or exceed this threshold, and Finetwork plans to supplement Vodafone’s footprint with additional wholesale agreements to enable scale.
Article regarding Orange-MM merger
The industry is closely watching the potential Orange Spain and MásMóvil merger, which would create a substantial national player. The European Commission has paused the clock to thoroughly assess the competition implications, signaling a rigorous regulatory review ahead. Management and investors anticipate remedies that may require asset divestitures to preserve competition.
Finetwork has signaled interest in acquiring some of the assets under consideration, though not those tied to fiber networks embroiled in exclusivity issues related to the Orange-MásMóvil deal. The group led by Óscar Vilda prefers to participate in remedies that improve wholesale access on favorable terms. An escape clause could be added to any forthcoming wholesale agreement, allowing Finetwork to modify the contract if remedy-based solutions are adopted elsewhere in the new group network.