Chilean anti-trust watchdog FNE has approved the proposed acquisition of a majority 60 percent stake in Telefonica’s local fibre-optic network by global investment firm KKR. The partners announced the USD 1 billion deal earlier this year, adding that they intended to convert the subsidiary – dubbed InfraCo – into Chile’s first open access wholesale fibre-optic company, building, operating and selling infrastructure as well as providing wholesale services to all current and future telecom operators.
The regulator said the transaction would not substantially reduce competition in the marketplace since KKR has no existing presence the markets in question, while the sale would in fact promote the use of Telefonica’s infrastructure by other companies, thus facilitating the entry of new broadband providers, above all in certain geographical areas.
The partners said the new business would expand fibre to the home (FTTH) coverage in Chile from 2 million households today to a minimum of 3.5 million households by 2023, and to provide wholesale services to more than 40,000 businesses.
