Reintel and the telecommunications business of Red Eléctrica

Red Eléctrica Infraestructuras de Telecomunicación S.A.U., Reintel, was founded on 1 July 2015 as an additional step in the development of the telecommunications business.

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Telecom Business Area Manager

Reintel is 100% owned by Red Eléctrica Corporación and its activity is focused on managing the telecommunications business of the Red Eléctrica Group, providing it with its own legal structure that allows better management and control of it, as well as a solid foundation on which to support its future growth.

Red Eléctrica has been present in the telecommunications sector since 1997, the year that saw the liberalization of telecommunications in Spain, through the creation of Retevisión as an alternative operator to Telefónica. Red Eléctrica’s fibre optic network became the communications backbone of Retevisión. In 2005, we positioned ourselves as an operator of fibre optic infrastructure, channelling the activity through the subsidiary Red Eléctrica Internacional, a task undertaken by Reintel as of 1 July 2015.

Our activity lies in the leasing to our clients of the surplus optic fibre strands (known as dark fibre) of the power transmission grid, as well as technical spaces for housing electronic equipment that connect to the leased optic fibre strands .

The main clients of this infrastructure are: telecommunications operators, for networks that provide telephony, internet and television services to its customers; private sector companies, for their own communications services, and public administrations, which allows them to bridge the digital gap that exists in certain territories.

In managing our telecommunications business, it is essential to adopt a position of absolute neutrality towards our customers, implementing the same neutrality exercised by Red Eléctrica in its role as the Spanish TSO. This business, based on infrastructure, does not compete with that of our clients, based on services, so it is feasible that several clients can have optic fibre strands on the same routes without creating conflicts of interest.

Red Eléctrica’s strategic plan incorporates the telecommunications business as one of the pillars of the expansion of the Company’s business base. In this regard, the formalization on 20 November 2014 of the transaction by which Red Eléctrica Internacional acquired the rights to the commercial management and use of ADIF’s dark fibre optic network has become of paramount importance to the development of this line of business; said transaction amounted to 433.7 million euros and has a period of validity of 20 years.

By means of this transaction, we have positioned ourselves as the neutral fibre optic infrastructure operator of reference in Spain, with a marketable dark fibre network of over 33,000 km and with a volume of revenue associated to this activity four times higher than before the acquisition of the rights of use of ADIF’s dark fibre. The client base expands and includes the major telecom operators present in Spain.

Joining together the fibre optic cable of the power transmission and rail networks, and marketing it as a single network, opens new business opportunities by expanding our client’s networks, incorporating new meshing and redundancy solutions. Similarly, we improve the access to fibre in urban areas for those clients using the power transmission fibre optic network and also the access to fibre in rural areas for those clients using the rail fibre optic network, not to mention the new access possibilities of international connections and to the insular systems.

The support and involvement of professionals from all areas of the Red Eléctrica Group is essential for the development of the telecommunications business. This business is based on the high quality and operational standards that are a hallmark of Red Eléctrica, as well as the professionalism and enthusiasm of all its employees. The confidence in the values ​​of our organization and the soundness of the path taken allow us to face and address the challenges of this line of business with the certainty of overcoming them, as we have done so in the past.