New joint venture to bring FTTH to 4m German homes

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Deutsche Telekom has agreed a long-term partnership with IFM Investors, via the IFM Global Infrastructure Fund (IFM GIF) to bring gigabit-capable FTTH broadband to more than four million homes in rural areas of Germany by 2028.

Under the partnership, IFM GIF will acquire a 50 per cent stake in the new venture, fibre roll-out company, GlasfaserPlus for €0.9bn. GlasfaserPlus will be headquartered in the Cologne area and is expected to build FTTH connections to more than four million homes across Germany from 2022 to 2028.

Its fibre network will operate under an open access model, which means it will be open to Deutsche Telekom as well as its competitors on a non-discriminatory basis. Deutsche Telekom will sign a wholesale agreement with GlasfaserPlus at closing.

Kyle Mangini, global head of infrastructure at IFM Investors said: ‘This is an attractive investment for IFM’s Global Infrastructure Fund – the GlasfaserPlus joint venture has strong socio-economic benefits as well as long-term cash-flow predictability, which will help us deliver on our purpose, which is to protect and grow the long-term retirement savings of working people.’

Srini Gopalan, the Deutsche Telekom board of management member responsible for Deutsche Telekom’s business in Germany added: ‘Partnerships are indispensable for the successful digitisation of our country. We are therefore very pleased that we were able to attract IFM GIF for our joint venture. This is a clear commitment to Germany as a business location and a signal that we will work together to build the digital backbone of our future society. Including the investments of the GlasfaserPlus joint venture, by 2030 we plan to invest more than €30 billion in fibre alone, so that all households and businesses will benefit from a gigabit-capable fibre connection. GlasfaserPlus helps us to decisively accelerate the digitisation of rural areas.’

Subject to relevant regulatory approvals, the joint venture will roll out fibre-optic networks from next year and also participate in government subsidy tenders.

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