Vodafone and Altice launch 7 billion euro German broadband company

Date:

- Advertisement -

Vodafone (VOD.L) and Altice launched a joint venture on Monday to challenge Deutsche Telekom (DTEGn.DE) by building a 7 billion euro ($6.8 billion) fibre broadband network in Germany.

Vodafone said the FibreCo venture would build a “fibre-to-the-home” broadband network available to 7 million German homes, allowing Britain-based Vodafone to upgrade its existing network in Germany, its biggest market.

FibreCo will invest up to 7 billion euros on the six-year project, which is expected to be 70% financed by debt.

Construction will be contracted to Altice subsidiary Geodesia, with Vodafone Germany responsible for marketing the faster broadband to new customers.

Both companies will own 50% in FibreCo.

The tie-up is subject to regulatory approval and expected to close in the first-half of 2023.

“This partnership builds on Vodafone’s significant next-generation network with Altice’s industrial expertise and proven fibre-to-the-home construction capabilities,” said Vodafone Chief Executive Nick Read.

Vodafone said it would receive cash proceeds from Altice of up to 1.2 billion euros, which would exceed its equity contributions to the joint venture over time.

Read is under pressure from long-suffering investors to improve returns at pan-European mobile and broadband operator Vodafone, and is in talks with CK Hutchison 0001.HK about merging their businesses in Britain.

Altice is the Amsterdam-based holding company bundling the assets of Franco-Israeli cable magnate Patrick Drahi. It already operates fibre infrastructure joint ventures in France, Portugal and Israel.

Source: Reuters

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

ADVERTISEMENT

Popular

More like this
Related

Nigerian naira falls to new record low on official market -FMDQ Exchange

Nigeria's naira currency fell to a new record low...

Zambia’s kwacha is Africa’s best performing currency in 2024

Zambia's kwacha is Africa's best performing currency against the...

Newmont plans to divest six mines, cut jobs to reduce debt after Newcrest buy

Newmont Corp (NEM.N), opens new tab on Thursday beat analysts' estimates...

Gold Fields eyes rapid ramp-up at new Chile mine, lifts output forecast

South Africa's Gold Fields (GFIJ.J), opens new tab on Thursday raised...