Deutsche Telekom forms GlasfaserPlus venture with IFM Investors to expand rural FTTH

News Broadband Germany 5 NOV 2021
Deutsche Telekom forms GlasfaserPlus venture with IFM Investors to expand rural FTTH

Deutsche Telekom said it has agreed to form the 50-50 joint venture GlasfaserPlus with Australian fund manager IFM Investors, which is owned by 23 pension funds. IFM is investing through the IFM Global Infrastructure Fund and will pay EUR 900 million for 50 percent of GlasfaserPlus, valuing the new company at EUR 1.8 billion. The initial payment from the co-investor enables Deutsche Telekom to finance part of its equity obligations in the venture.

Glasfaser Plus will have its HQ in Cologne and the mission to add over 4 million FTTH connections in rural and development areas in Germany by 2028. A significant part of the planned investment will be funded by bank financing.

GlasfaserPlus will operate the fibre network under the open access model, making it available to Deutsche Telekom and its competitors on a non-discriminatory basis. Deutsche Telekom will sign a wholesale agreement with GlasfaserPlus at closing.

Deutsche Telekom has pledged to invest EUR 6 billion per year in Germany from 2022. By 2030, Telekom plans to invest over EUR 30 billion in fibre-optic connections, including the investment in the new joint venture.

Categories:

Fixed

Companies:

Deutsche Telekom

Countries:

Germany

Tags:

Network Access, Shareholders & subsidiaries, Network equipment, Network operations services, Fibre, Internet Access, Wholesale, Financial funding, M&A buyouts & divestments

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