Vodafone Spain, now owned by Zegona Communications, and Telefónica signed a fiber wholesale agreement this week in Spain.

This new agreement replaces the current wholesale contract which is due to expire at the end of this year.

According to Vodafone, the agreement will "create material synergies for both companies by maximizing the use of existing networks and optimising their investments."

In July, Zegona confirmed it had signed a non-binding agreement with MásOrange, made up of MásMóvil and Orange following the completion of their merger earlier this year, to create a fiber JV.

The JV network is expected to cover approximately 11.5 million premises across Spain.

In the same month, Zegona also signed a non-binding term sheet with Telefónica for a joint FibreCo covering approximately 3.5 million premises.

“This new fiber wholesale agreement with Telefonica fully complements our recently announced FibreCo transactions and completes the transformation of Vodafone Spain’s fixed line strategy," said Eamonn O’Hare, chairman and CEO of Zegona. "The powerful combination of these agreements will deliver national fiber coverage with no incremental network investment. We expect these agreements to deliver substantial economic benefits to Vodafone Spain and significant incremental value for all Zegona stakeholders.”

"With the creation of this FibreCo, Telefónica is capturing efficiencies and adding value to the available network, contributing to the development of digitalization in the Spanish market for the benefit of consumers and businesses," added Emilio Gayo, president of Telefónica Spain.

Spanish newspaper Expansión separately reported this week that Telefónica also signed a Fiber-to-the-Home agreement with MásOrange.

That particular deal will see MásOrange gain access to Telefónica's FTTH network, providing it access to 3.5 million homes. As part of the agreement, MásOrange has said it won't invest any more in additional optical fiber in Spain.