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Vodafone and Altice to Compete with Deutsche Telekom

  • On October 17, 2022, Vodafone and Altice formed a joint venture to build a fiber internet network in Germany for EUR7 billion ($6.8 billion), competing with Deutsche Telekom
  • Vodafone claims that the FibreCo agreement will enable the British business to improve its network in its largest market by establishing a "fiber-to-the-home" broadband network accessible to seven million homes in Germany
  • FibreCo expects to invest up to EUR7 billion in the six-year project, which will be financed to a 70% debt level

Vodafone and Altice to Compete with Deutsche Telekom

A joint venture between Vodafone and Altice was established on October 17, 2022, to build a fiber broadband network in Germany for EUR7 billion ($6.8 billion), which will compete with Deutsche Telekom.

According to Vodafone, the FibreCo partnership will create a "fiber-to-the-home" broadband network accessible to seven million homes in Germany, enabling the British company to enhance its network in its largest market. The six-year project, on which FibreCo will invest up to EUR7 billion, is expected to be financed to a debt level of 70%.

Vodafone Germany will be responsible for promoting faster broadband to new subscribers, with construction being entrusted to Altice’s subsidiary, Geodesia. Each company will have a 50% stake in FibreCo. The joint venture, which is pending regulatory approval, is expected to be completed in the first half of 2023. The number of deals made by Vodafone and Altice France in 2022 was significantly lower than that in 2021, according to GlobalData.

The total number of telecom deals in the UK decreased significantly in 2022 in comparison to that in 2021, according to GlobalData.

Vodafone estimated that it would receive up to EUR1.2 billion in cash from Altice, which over time would exceed its stock commitments to the joint venture. Patrick Drahi, a Franco-Israeli cable magnate, brought his businesses under the umbrella of Altice, an Amsterdam-based holding firm. It already runs collaborative partnerships for fiber infrastructure in Israel, Portugal and France.

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