CMS Chile advised KKR on the acquisition of a majority stake in the existing fiber optic network of Telefonica Chile, the largest in the country. The aim is to create the first independent and open access wholesale fiber optic infrastructure network available to all current and future telecom operators in the country.
The deal will bring greater broadband access, creating a competitive marketplace that benefits consumers and businesses across the country. Fiber-to-the-home connectivity is considered a major technology upgrade as it is a necessary step for next-generation applications such as 5G deployment, HDTV streaming and symmetrical services.
The company plans to expand broadband coverage in Chile from 2 million homes today to a minimum of 3.5 million homes by 2023, and provide wholesale service to more than 40,000 businesses, telecom towers and small cells. The transaction is valued at approximately USD 1bn. It was signed on 22 February 2021 and closed in July 2021.
The CMS Chile team that advised KKR was led by partner Jorge Allende D. and included partner Ignacio Errazquin, senior associates Enrique Vergara and Sebastián Barros, and associates Ricardo Celedón, Tomás Barros and Pedro Allende.
