Telekom forms fibre JV with IFM Global Infrastructure Fund

8 Nov 2021

IFM Investors, through the IFM Global Infrastructure Fund (IFM GIF), has agreed a long-term partnership with Deutsche Telekom for the establishment of a new fibre-optic joint venture GlasfaserPlus. The 50-50 joint venture plans to roll out gigabit-capable fibre-to-the-home (FTTH) broadband to over four million homes in rural areas of Germany by 2028. IFM GIF – an investor in essential infrastructure assets, owned by a group of Australian pension funds – will acquire a 50% stake in GlasfaserPlus for EUR900 million (USD1.04 billion). GlasfaserPlus will operate its fibre network under an open access model and make its network open to Telekom as well as its competitors on a non-discriminatory basis. Subject to relevant regulatory approvals, the joint venture will roll out fibre-optic networks from 2022 and also participate in government subsidy tenders. The expansion is planned in addition to Telekom’s goal of connecting a total of ten million households by 2024.

‘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,’ commented Srini Gopalan member of the Deutsche Telekom Board of Management responsible for the firm’s business in Germany, adding: ‘Including the investments of the GlasfaserPlus joint venture, by 2030 we plan to invest more than EUR30 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 therefore an important element of our rollout strategy. This will benefit local authorities, but above all our customers.’

Germany, Deutsche Telekom (DT), Telekom Deutschland