LONDON -Britain’s Vodafone and France’s Altice launched a joint venture on Monday to challenge Deutsche Telekom and build 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 the British operator 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 percent financed by debt.
Construction will be contracted to Altice subsidiary Geodesia, with Vodafone Germany responsible for marketing the faster broadband to new customers.
Both companies will own 50 percent in FibreCo.
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.
($1 = 1.0270 euros)