Global investment firm KKR has agreed to acquire a majority stake in PangeaCo and the existing fiber optic networks in Peru of Telefónica del Perú and Entel Perú.

This acquisition aims to establish Peru’s first nationwide open access wholesale fiber optics company, thereby enhancing fiber optics connectivity throughout the country.

This consolidation of PangeaCo, Telefónica del Perú, and Entel Perú’s fiber optic networks will result in an independent company under KKR’s control.

KKR intends to make an additional investment of approximately $200 million to more than double the existing ultra-fast fiber network, thereby expanding from over two million homes currently to an anticipated 5.2 million homes across 86 provinces by the end of 2026.

The new entity, named ON*NET Fibra de Perú, will be created following KKR’s acquisition of a controlling interest in PangeaCo and the subsequent purchase of the fiber optic networks of Telefónica del Perú and Entel Perú. KKR will possess a 54% stake in ON*NET Fibra de Perú, while Telefónica Hispanoamérica and Entel Perú will hold 36% and 10% respectively.

ON*NET Fibra de Perú’s fiber optic network will be open for use by all internet service providers, a move expected to boost competition in the wholesale market. Telefónica del Perú and Entel Perú will be anchor tenants on the expanded network, therefore enabling more customers to access ultra-high-speed offerings.

In Peru, less than 35% of households currently have access to high-speed fiber optic networks, despite around 88% having mobile or fixed internet service.

KKR, as the majority shareholder, aims to more than double the households reached by ON*NET Fibra de Perú’s fiber optic network, including middle- and low-income households, and municipal areas outside of Lima.

The transaction, subject to regulatory approvals, including the Peruvian antitrust agency (INDECOPI), underlines the continued investor confidence in Peru’s infrastructure and the digital connectivity’s sustainable development.

  Entel Perú, fiber optic network, KKR, ON*NET Fibra de Perú, PangeaCo, Peru, Telefónica, Telefónica del Perú