Telefónica and KKR have put OnNet Fibra, their Chilean wholesale fibre joint venture, up for sale in a deal that could value the business at up to US$2 billion.

The two shareholders have appointed JPMorgan and Scotiabank to run the process, according to a report by Spanish financial daily Expansión. OnNet carries an enterprise value estimated at between US$1.5 billion and US$2 billion, though substantial debt on the business would reduce what shareholders actually receive.

KKR controls 60% of OnNet, with Telefónica holding the remaining 40%. The sale is not expected to close until 2027.

Who depends on the network?

OnNet provides wholesale fibre services to most of Chile's telecoms operators. Its customer list includes Millicom, Entel, ClaroVTR and DirecTV, which means any change of ownership will be felt across the entire Chilean market rather than by a single operator.

The network passes 5.2 million homes and spans more than 69,000km of fibre. To gauge the scale, that footprint covers a large share of the country's roughly 7 million households, positioning OnNet as a piece of infrastructure that a buyer cannot easily replicate.

Why is Telefónica selling?

The sale would complete Telefónica's exit from Chile. The Spanish operator sold its Chilean telecoms business to Millicom in February for an enterprise value of around US$1.2 billion. OnNet is its last remaining asset in the country.

For KKR, the exit follows a familiar infrastructure playbook. The private equity firm built its position in 2021, when Telefónica sold a majority stake in its fibre infrastructure business to the investor. OnNet later expanded by acquiring fibre infrastructure from Entel for US$358 million, an acquisition that helped push the network to its current footprint.

What happens next?

The banks are expected to sound out infrastructure funds and operators with an appetite for Latin American digital infrastructure. Debt levels will shape the final price: the gap between a US$2 billion enterprise value and the proceeds reaching shareholders depends on how much leverage sits on the business.

Any transaction remains more than a year away, with the sale not expected to close until 2027. Until then, OnNet's wholesale customers — including Millicom, now also Telefónica's buyer in Chile — will continue to depend on a network whose ownership is in play.