Telefónica partners Allianz for €5bn Germany investment

Telefónica partners Allianz for €5bn Germany investment

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Telefónica is reportedly partnering with private equity division of German insurer Allianz for a €5 billion infrastructure investment in Germany.

According to Spanish publication, Expansion and as reported by Reuters, Telefonica and Allianz will work together to create a joint venture owned 50% each to develop a fibre-optic network in Germany – cited by unknown financial sources.

The new infrastructure aims to build a network covering up to 2 million homes with fibre connectivity in small cities.

Should the deal go ahead, it will expand Telefónica’s footprint in Germany at a time when its competitors are venturing into service beyond traditional mobile.

In September, Telefónica Germany/O2 become the first network operator in Germany to build a 5G cloud-based core network.

The network will reportedly demand multi-million Euro investment with physical components provided by Ericsson and data residing on AWS serves in Germany, through AWS Outposts.

The supposed deal with Allianz follows a report by Reuters last week that Telefónica was in the final stages of negotiating a deal with banks and an unidentified investor to build the fibre-optic network to supply under-served areas of Germany.

Neither Telefónica nor Allianz have confirmed these reports.

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