MásOrange and Vodafone are in discussions to create a fiber network joint venture (JV) in Spain.

As reported by local newspaper Expansión this week, the two telcos plan to offer up a stake of 40 percent for investors in the new entity, for a targeted amount of between €1.5 billion ($1.63bn) and €2 billion ($2.17bn).

Such a move will help the carriers reduce their debt pile while holding a majority stake in the JV.

It's reported that the JV will have a value of up to €10bn ($10.84bn).

MásOrange will own the majority of the stake at around 50 percent, while Vodafone will have a 10 percent stake.

The new company is expected to be created at the end of this month.

MásOrange, made up of MásMóvil and Orange following the completion of their merger earlier this year, will contribute FTTH (fiber-to-the-home) connections to around 9 million homes and businesses, while Vodafone will add a further three million.

Vodafone completed the sale of its Spanish business to UK investment firm Zegona for €5 billion ($5.4bn) in May.