Vodafone Group PLC (LSE:VOD) is exploring a merger of its Greek fibre network with that of regional utility giant PPC Group in a move that would create one of the country's largest wholesale broadband infrastructure providers.
Vodafone Greece and PPC have signed heads of terms for a proposed 50:50 joint venture that would combine their respective fibre-to-the-home networks and wholesale fibre businesses, with the two networks currently serving more than 1.6 million homes combined.
The venture would operate as an open-access wholesale provider, offering connectivity to internet service providers across Greece.
The agreement remains preliminary and is subject to due diligence, negotiation of binding documentation and regulatory approvals. Vodafone cautioned there is no certainty that a final transaction will be completed.
The proposal is the latest example of telecoms operators seeking greater scale in fibre infrastructure as they look to spread investment costs and improve returns from next-generation broadband networks.
For Vodafone, the deal would strengthen its position in the Greek fixed-line market while reducing the capital intensity of network expansion.
Vodafone said it would provide a further update in due course as discussions progress.
