Deutsche Telekom and German regional utilities provider EWE have signed a declaration of intent to establish a joint venture to expand the fibre-optic network in northwestern Germany and deliver broadband internet to over 1 million households via FTTB/FTTH. The two companies will each own hold a 50 percent stake in the planned joint venture, which will invest up to EUR 2 billion in network expansion over a ten-year time frame in the states of Lower Saxony, North-Rhine Westphalia and Bremen. The joint venture will prioritize rural areas in these states when its planned operations begin in mid-2018.
Telekom said the joint venture plans to grant network access to third parties on commercial terms. EWE, Deutsche Telekom and other providers could then use the new network for their own sales and marketing, meaning customers could choose among a variety of broadband providers.As a prerequisite for this to happen however, FTTB/FTTH accesses would first need to be deregulated, said Deutsche Telekom CEO Tim Hoettges. Telekom is currently “having talks” with Germany’s national telecoms regulator, the Federal Network Agency, on this issue, he added.
The joint venture still requires the approval from Germany’s Federal Cartel Office. Deutsche Telekom and EWE said they will continue to keep separate their services for business customers. The two companies’ respective ownership stakes in their existing fibre-optic networks will also remain unchanged. The joint venture will assume ownership of the new network, including its street and home connections, and be headquartered in northwest Germany.
