The agreement was confirmed with an initial term of five-years, renewable by mutual agreement, and can be extended to the additional 500,000 homes due to be connected by Adamo this year.
It will allow Euskaltel to access Adamo's network in bitstream mode, as well as all the equipment and technical systems needed to ensure that the Euskaltel Group's business activity on Adamo's network at a national level is “entirely satisfactory and efficient”.
José Miguel García, Euskaltel Group CEO, said: “The agreement is a significant step in the group's strategy, as it enables us to continue deploying and efficiently managing the network, both in terms of in-house deployment and also access to new homes via network sharing agreements like the one signed with Adamo.
“Our goal is to reach all towns and villages, even the most remote ones, and to help eliminate the digital divide in our society by offering the most advanced telecommunications services,” García added.
Euskaltel Group launched operations throughout Spain under the Virgin brand on 20 May, this year, branding it a “huge success” in its Q2 financial results due to “record customer growth”. As of 30 June, Virgin counted 6,500 customers in Spain.
Those same financial results saw Euskaltel confirm €40 million in “annual synergies”, giving rise to “record profitability levels”.
Euskaltel operates nationally via agreements signed with Orange and Telefónica. The agreement with Adamo will increase flexibility and efficiency in national network usage, positively impacting on the company's forecasts and bringing network management efficiencies.
Adamo's CEO Martin Czermin said he is “very pleased with the agreement” because “we are gaining an important partner, but above all, a partner who is interested in offering state-of-the-art telecommunications services to Spain's rural areas. It is here where we have become the face of the Internet in rural Spain.”
He added: “Adamo's growth is achieved not only through its own customers; its wholesale customer numbers are also growing. The Adamo network has been open to other operators from the start and we have many wholesale agreements all over Spain”.
Adamo provides internet, landline and mobile services, as well as products for the business and wholesale markets. Since 2016 it has been 80% owned by EQT, which has now invested an additional €250 million in the company to support its expansion plan.
