Joint venture formed for Austrian fibre investment
Austrian operator Magenta Telekom has partnered with French investor Meridiam to finance the expansion of its fibre network.
The aim is that, by 2030, the companies will have jointly invested €1bn to provide 650,000 new homes and businesses with access to a high-speed fibre network. The strategic partnership is predominantly targeting rural regions and cities, and to ensure the project meets the needs of these communities, Magenta is to deploy a dedicated team and will be in touch with local mayors and stakeholders shortly. The start of construction is planned for this year.
Andreas Bierwirth, CEO of Magenta Telekom says: ‘In Meridiam we have found a strong partner with a wealth of experience in working successfully with industry partners and local communities. Together we will turn the Alpine republic into a digital republic. As Magenta, our clear strategy is to expand our position as the leading high-speed network provider. After upgrading our existing network to 1 Gbit/s across the board in recent years, we will focus fully on expanding the networks in the coming years. We not only concentrate on the big cities, but also consciously go into rural areas. We are expanding directly and immediately without a minimum number of customers who have to sign a preliminary contract, so we can bring high-performance internet to the regions faster. And we offer coordination with the expansion of our mobile network. So that every community can boast the best, perfectly integrated fibre optic and cellular infrastructure.’
Adds Stephan Wehrmann, business development director DACH at Meridiam: ‘Meridiam is committed to creating sustainable infrastructure that improves people's quality of life. The strategic partnership with Magenta to bring fibre optics to over 650,000 households and businesses underlines this commitment to the Austrian population. We look forward to working with Magenta and local communities to expand this critical infrastructure, provide access to high-quality internet, and create long-term positive value for society.’
Dominique Leroy, member of the management board for the Europe segment of Magenta’s parent company, Deutsche Telekom AG concludes: ‘Austria is a very important market for Deutsche Telekom. We have been investing in the expansion of digital infrastructure for 20 years. Today we are writing the next chapter: the largest private fibre optic initiative in Austria to date. Deutsche Telekom stands for digital participation: through our joint commitment, 2.5 million customers will be gigabit-enabled by 2030. This is great news for customers, mayors and partners in Austria.’
The joint venture is subject to approval from the EU Commission. The corresponding competition process has already started and is expected to be completed by the end of the year.