In May 2010, CVC Funds acquired a 35% stake in the Spanish fibre cable network operator, R. R is the leading cable operator in Galicia, Spain, with a fibre optic network stretching over 250,000km.
R was established in 1999. The company today offers a range of high quality products, including fixed telephone lines, broadband, pay-TV and, since December 2007, mobile phone services. The company’s client base is primarily residential, but also includes business customers, offering digital services to all customers. R is one of the few internet service providers in Spain which offers broadband services of up to 30 MB (with availability to increase to 100 MB in the short-term).
R employs approximately 190 members of staff and has a number of offices across Galicia. The network is the key strength of the company and it is already built and invested. It is one of the few next access generation networks which are able to provide the services today that will be required in the next decade. Therefore, the company is a high quality asset with significant barriers to entry. At the same time, the company is prepared to capture the growth expected in the sector, with the demand for R’s services growing year on year. The main driver is the broadband services segment, which is expected to grow at a double-digit rate in the next five to ten years.