Deutsche Telekom inks €1bn JV with IFM on rural fibre in Germany
Deutsche Telekom has formed a long-term partnership with the IFM Global Infrastructure Fund (IFM GIF) establishing a new joint venture valued at €0.9 billion.
“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,” said Kyle Mangini, global head of infrastructure at IFM Investors.
IFM GIF, a subsidiary of IFM Investors, along with Deutsche Telekom aim to roll out gigabit-capable Fibre-to-the-Home (FTTH) broadband to over four million homes in rural areas of Germany by 2028.
Specifically, IFM GIF will acquire a 50% stake in the fibre joint venture company GlasfaserPlus GmbH for approximately €0.9 billion ($1.040 billion).
“We are pleased to partner with Deutsche Telekom on our first major fibre investment in Europe," said Deepu Chintamaneni, executive director at IFM Investors.
"We look forward to working with our partners to roll out this essential infrastructure to households in rural Germany and contribute to the digitisation of the country.”
GlasfaserPlus will be located in the Cologne area of Germany and is expected to build FTTH connections to more than four million homes across the country from 2022 to 2028.
Additionally, GlasfaserPlus will operate its fibre network under an “open access” model and making its network open to Deutsche Telekom as well as its operators on a non-discriminatory basis. Deutsche Telekom will sign a wholesale agreement with GlasfaserPlus at closing.
"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,” said Deutsche Telekom Board of Management responsible for Deutsche Telekom’s business in Germany, Srini Gopalan a member of the Deutsche Telekom board of management responsible for Deutsche Telekom’s business in Germany.
“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."
The joint venture is subject to relevant regulatory approvals, and it due to begin the roll out of fibre-optic networks from 2022 and also participate in government subsidy tenders.