Telefónica spins out infrastructure assets to create Telxius

Feb. 15, 2016
Telefónica has spun out much of its infrastructure assets into a new company, called Telxius. Led by Alberto Horcajo as CEO, Telxius will offer wholesale services across Telefónica's global network. It also will be charged with seeking new growth opportunities, including the possibility of incorporating third-party assets.

Telefónica has spun out much of its infrastructure assets into a new company, called Telxius. Led by Alberto Horcajo as CEO, Telxius will offer wholesale services across Telefónica's global network. It also will be charged with seeking new growth opportunities, including the possibility of incorporating third-party assets.

Telxius will have at its disposal approximately 15,000 Telefónica telecommunication towers in Spain and other countries as well as the Telefónica Group´s 31,000 km of submarine cable networks. These undersea fiber-optic network assets include the SAM-1 undersea cable system, which connects the United States with Central and South America (see "Telefónica Global Solutions adds 100G to SAm-1 submarine and terrestrial fiber-optic networks").

Overall, Telefónica currently manages fiber-cable infrastructure that connects more than 40 countries in Europe and the Americas. The combined networks carry more than 4.5 Tbps of traffic annually for Telefónica Group and other fixed and mobile operators, Internet service providers (ISPs), and content providers.

Telefónica says it will create other companies that will be gradually integrated into Telxius "over the coming months." In a filing, the company stated that it is considering several strategies for Telxius, including a potential IPO.

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