Vodafone and Altice launched a joint venture on Monday to challenge Deutsche Telekom by building a 7 billion euro ($6.8 billion) fibre broadband network in Germany.
Vodafone said the FibreCo venture would build a "fibre-to-the-home" broadband network available to 7 million German homes, allowing Britain-based Vodafone to upgrade its existing network in Germany, its biggest market.
FibreCo will invest up to 7 billion euros on the six-year project, which is expected to be 70% financed by debt.Construction will be contracted to Altice subsidiary Geodesia, with Vodafone Germany responsible for marketing the faster broadband to new customers.The tie-up is subject to regulatory approval and expected to close in the first-half of 2023.
"This partnership builds on Vodafone's significant next-generation network with Altice's industrial expertise and proven fibre-to-the-home construction capabilities," said Vodafone Chief Executive Nick Read. Vodafone said it would receive cash proceeds from Altice of up to 1.2 billion euros, which would exceed its equity contributions to the joint venture over time.
Read is under pressure from long-suffering investors to improve returns at pan-European mobile and broadband operator Vodafone, andAltice is the Amsterdam-based holding company bundling the assets of Franco-Israeli cable magnate Patrick Drahi. It already operates fibre infrastructure joint ventures in France, Portugal and Israel.Register now for FREE unlimited access to Reuters.com
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Altice USA and Fox Reach Carriage Deal Agreement For Optimum, Averting Sports And Content BlackoutLet the games continue. Altice USA and Fox have reached a new carriage agreement just before a Friday midnight deadline that would have blacked out Optimum programming for New York area viewers. Th…
Read more »
Fox and Altice Strike Carriage Deal, Averting BlackoutThe cable company and owner of Fox and Fox News had been warning of a potential blackout since Thursday.
Read more »
HelloFresh won't renew lease at Richmond facility, cutting over 600 jobs - San Francisco Business TimesThe German company, which saw its fortunes grow during the pandemic, is now reeling from a 70% bite in its stock value so far this year.
Read more »
Fox and Altice Strike Carriage Deal, Averting BlackoutThe cable company and owner of Fox and Fox News had been warning of a potential blackout since Thursday.
Read more »
Altice USA and Fox Reach Carriage Deal Agreement For Optimum, Averting Sports And Content BlackoutLet the games continue. Altice USA and Fox have reached a new carriage agreement just before a Friday midnight deadline that would have blacked out Optimum programming for New York area viewers. Th…
Read more »
New Mach 5 Hypersonic Scramjet Is Powered by Sustainable Green HydrogenAustralian startup Hypersonix has developed a new and green hypersonic satellite launch system that will make launches more accessible.
Read more »