Last checked at 17 Oct 2022 07:00
RNS Number : 0188D Voafone Group Plc 17 October 2022 16017 October 2022
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VODAFONE AND ALTICE TO CREATE A JOINT VENTURE TO DEPLOY FIBRE-TO-THE-HOME IN GERMANY, CONNECTING UP TO 7 MILLION HOMES
Voafone Group Plc ("Voafone") an Altice ("Altice") toay announce they are creating a joint venture ("FibreCo") to eploy fibre-to-the-home ("FTTH") to up to 7 million homes over a 6-year perio.
Voafone operates a leaing next generation broaban network in Germany, currently offering up to 1Gbps connections to over 24 million homes. This partnership with Altice is complementary to Voafone's clear upgrae plans for its existing hybri fibre cable network. This inclues bringing fibre connections closer to all connecte homes through 'noe splitting' an DOCSIS 3.1 'high split', which enables ownloa spees of over 3Gbps. These upgrae plans, couple with next generation technology avances, such as DOCSIS 4.0, provie a path to 10Gbps spees across our hybri fibre cable network over time.
Key elements of FibreCo an its investment plans inclue:
183160160160 FibreCo will be owne 0% by Voafone Germany an 0% by Altice
183160160160 FibreCo will construct an operate a FTTH broaban network available to up to 7 million homes (the "Roll-out")
- approximately 80% of the Roll-out will be focuse aroun large housing associations in Voafone's existing hybri fibre cable network footprint which are intereste in FTTH upgraes an
- the remaining 20% of the Roll-out will be outsie of Voafone's current footprint, focusing on neighbouring homes
183160160160 FibreCo will offer wholesale access to all telecommunications service proviers, to fully exploit the potential of the infrastructure
183160160160 FibreCo will benefit from Voafone's commercial expertise an relationships with housing associations an Altice's unique FTTH roll-out, wholesale an operational expertise
183160160160 FibreCo has contracte Geoesia (a subsiiary of Altice) for the majority of Roll-out construction an maintenance
183160160160 The creation of FibreCo is expecte to be complete in H1 2023
FibreCo will offer wholesale access to all telecommunications service proviers in Germany, exploiting the full potential of the fibre network. Voafone Germany will act as the anchor tenant, entering into an agreement with the FibreCo upon closing of the Transaction. Within FibreCo's footprint, Voafone Germany has committe to market FibreCo's network to new customers on an exclusive basis, whilst Voafone Germany's existing network will continue to service customers who o not wish to migrate to FTTH. Voafone Germany is not proviing FibreCo with any minimum revenue or volume commitment.
Nick Rea, Voafone Group Chief Executive, commente: "This partnership buils on Voafone's significant next generation network with Altice's inustrial expertise an proven Fibre-to-the-Home construction capabilities enabling us to bring gigabit connectivity to even more customers in Germany. We are prou of our long-staning relationships with housing associations an please as a truste provier to bring more connectivity options for tenants. This significant infrastructure investment supports the country's social, economic an igital evelopment an the broaban ambitions of the German government as part of Europe's Digital Decae targets."
Davi Drahi, co-CEO of Altice, commente: "We are elighte an honoure to join forces with Voafone to buil an operate a FTTH network connecting up to 7 million premises in Germany. Altice's existing presence in Germany through Geoesia, its unique track recor in operating over 4 million homes with the latest very-high spee fibre networks across Europe an the US, together with Voafone's competitive position as anchor tenant will help us establish one of the largest FTTH ventures in Europe. We have pioneere fibre joint ventures in France an Portugal, an are thus thrille to be able to replicate such a feat in Germany with such a partner."
Financial information
As part of the Transaction, Voafone is expecte to receive cash procees from Altice of up to 83641.2 billion, comprising:
183160160160 An upfront payment of 8364120 million at closing
183160160160 Aitional eferre payments of up to 8364487 million (in aggregate) to be pai as the Roll-out progresses (once the first 1. million homes have been passe an until the en of the Roll-out), an
183160160160 An earn-out of up to 83649 million (in aggregate) base on FibreCo's performance.
Over the Roll-out perio, FibreCo intens to invest up to c.83647 billion, of which 70% is expecte to be finance by ebt that will be non-recourse to Voafone an Altice. Voafone's share of equity contributions is expecte to be lower than the cash procees realise over time.
The transaction is subject to customary closing conitions, incluing regulatory approval an is expecte to close in H1 2023.
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For more information, please contact:
Investor Relations160160160160160160160160160160160160160160160160160160160160160160160160160160160160160 Meia Relations
Investors.voafone.com160160160160160160160160160160160160160160160160160160160160160 Voafone.com/meia/contact
ir@voafone.co.uk160160160160160160160160160160160160160160160160160160160160160160160160160160160160160 GroupMeia@voafone.com
Registere Office: Voafone House, The Connection, Newbury, Berkshire RG14 2FN, Englan. Registere in Englan No. 1833679
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Altice Investor Relations160160160160160160160160160160160160160160160160160160 Altice Meia Relations
sam.woo@altice.net160160160160160160160160160160160160160160160160160160160160160160160160 arthur.reyfuss@altice.net
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About Altice
Altice is a global leaer in telecom, content, meia, entertainment, an avertising. Its core ientity lies in the more-than-46 fixe million homes passe it has eploye an currently operates with state-of-the-art fibre technology. Altice elivers innovative, customer-centric proucts, an solutions that connect an unlock the limitless potential of its overmillion customers over fibre an mobile broaban networks. On top of operating in France, Portugal, Israel, the Dominican Republic, the Unite States, an Germany, Altice has also successfully establishe first-of-its-kin an fibre infrastructure joint ventures in France, Portugal, an Israel, comprising 18 million homes passe. Altice also has a global presence through its online avertising business Teas.
About Geoesia
Geoesia is an engineering an construction company whose core mission is to eliver the finest very high-spee telecom networks. Over the past 20 years, its operations have spanne across France, Portugal, Israel, the Caribbean, Unite States, an Germany, with a perpetual goal of bettering Geoesia's expertise an know-how in the en-to-en buil-up of Telecom Networks. Geoesia's solutions comprise the full range of Telecom Networks' activities for both fixe an mobile technologies (engineering, civil engineering, installation an commissioning, maintenance, etc.) whilst also proposing a bespoke line of eicate proucts (ODN passive networks, XGS-PON active solutions, small cells, OSS, etc.). Geoesia is committe to enhance people's quality of life-paying attention to security an the environment-thereby striving for a better tomorrow. https://www.geoesia.net/.
About Voafone
Unique in its scale as the largest pan-European an African technology communications company, Voafone transforms the way we live an work through its innovation, technology, connectivity, platforms, proucts an services.
Voafone operates mobile an fixe networks in 22 countries, an partners with mobile networks in 47 more.160 As of 30 June 2022, we ha over 300 million mobile customers, more than 28 million fixe broaban customers an 22 million TV customers. Voafone is a worl leaer in the Internet of Things (IoT), connecting aroun 160 million evices an platforms.
We have revolutionise fintech in Africa through M-Pesa, which celebrates its 1th anniversary in 2022. It is the region's largest fintech platform, proviing access to financial services for more than 0 million people in a secure, afforable an convenient way.
Our purpose is to connect for a better future by using technology to improve lives, igitalise critical sectors an enable inclusive an sustainable igital societies.
We are committe to reucing our environmental impact to reach net zero emissions across our full value chain by 2040, while helping our customers reuce their own carbon emissions by 30 million tonnes by 2030.160 We are riving action to reuce evice waste an achieve our target to reuse, resell or recycle 100% of our network waste.
We believe in the power of connectivity an igital services to improve society an economies, partnering with governments to igitalise healthcare, eucation an agriculture an create cleaner, safer cities.160 Our proucts an services support the igitalisation of businesses, particularly small an meium enterprises (SMEs).160
Our inclusion for all strategy seeks to ensure no-one is left behin through access to connectivity, igital skills an creating relevant proucts an services such as access to eucation, healthcare an finance.160 We are also committe to eveloping a iverse an inclusive workforce that reflects the customers an societies we serve.
160For more information, please visit160http://www.voafone.com, follow us on Twitter at @VoafoneGroup or connect with us on LinkeIn at160http://www.linkein.com/company/voafone.160
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