Telenet agrees joint venture with Fluvius to create ‘data network of the future’

19 Jul 2022

Belgian full-service telecoms provider Telenet has entered into a binding agreement with utilities group Fluvius to gradually evolve their combined HFC network infrastructure into the ‘data network of the future’, including fibre-to-the-home (FTTH) technology, with the aim to ultimately provide speeds of 10Gbps across the entire footprint.

As announced in October last year, both companies will incorporate a new independent self-funding infrastructure company (working name ‘NetCo’), of which Telenet will own 66.8% and Fluvius 33.2%. Combining both companies’ fixed network assets, NetCo will invest in the gradual evolution of their current HFC network infrastructure into an FTTH network, targeting 78% of their combined footprint in Flanders by 2038, through a combination of own build and/or a potential collaboration with external partners. NetCo will also focus on upgrading the existing HFC network with DOCSIS technology in areas where FTTH will not be deployed. Telenet’s footprint in parts of Brussels and Wallonia will also be included in NetCo and be part of NetCo’s investments.

The estimated investment of up to maximum EUR2 billion (USD2.03 billion) will be funded through NetCo’s cash flow as well as additional intragroup financing facilities, according to Telenet, and will therefore not require any incremental external financing. The majority of this investment will be done within the next eight years.

Belgium, Fluvius, Telenet (incl. BASE)