Orange partners APG for €605m joint fibre venture
Orange Polska (Poland) has formed a jointly owned fibre company with APG, a Dutch pension investment company.
The new joint fibre company aims to support the rollout of fibre across Poland, specifically underserved areas where broadband infrastructure is limited or non-existent. Over the next five years, the fibre company plans on rolling out 2.4 million lines, including 1.7 million homes.
“This partnership with APG is excellent news for Orange Polska. APG is a global leader in infrastructure management and will provide us with the financial backing necessary to achieve our ambitious five-year fibre roll-out program in Poland,” said Mari-Noëlle Jégo-Laveissière, deputy CEO of Orange in charge of European Operations (outside France).
“Together we will be able to bring fibre to an additional 1.7 million homes mainly in areas that still lack reliable internet access across the country. This ambition will be backed with a tried-and-tested business model that aims to maximise available revenues by opening-up wholesale access to third-party operators. This is a clear win-win for everybody that will also contribute to social and economic development in the country.”
The deal is valued at €605 million (2,748 million PLN) meaning that Orange Polska will receive €303 million (1,374 million PLN) from APG. 65% of the €303 million will be transferred on closing and the rest will be paid between 2022 and 2026, as the deployment plan progresses.
Through this project Orange Polska will be able to accelerate its ambitious fibre-optic rollout plans by sharing investment costs.
“I am delighted that Orange, as Europe’s leading player in the FTTH fibre market and one of the largest mobile network operators, has successfully brought to fruition its three major infrastructure projects, delivering on the commitment made in our Engage 2025 strategic plan,” added Ramon Fernandez (pictured), delegate CEO of Orange in charge of finance, performance and development.
“These projects clearly underline the value of our network assets, which have been shown to be so crucial during the ongoing pandemic. By creating these independent structures, we are strengthening our leadership and fostering sustainable value creation through an optimised infrastructure management and improved customer service.”