Vodafone Group has announced plans to set up a joint venture with Altice to provide fibre-to-the-home (FTTH) services for customers in Germany.

The joint venture, named FibreCo, is expected to deploy fibre-to-the-home to up to 7 million German homes over a period of six years.

Vodafone Germany and Altice will own a stake of 50% each in the new joint venture, which is expected to be created in H1 2023.

FibreCo will engage in constructing and operating the fibre-to-the-home broadband network in Germany. It is expected to offer wholesale access to all telecommunications service providers in the European country.

Nearly 80% of the network roll-out will be aimed at around large housing associations interested in FTTH upgrades in Vodafone’s existing hybrid fibre cable network footprint. The remaining roll-out will focus on neighbouring homes outside of Vodafone’s current footprint.

FibreCo is expected to invest up to €7 billion over the roll-out period.

Geodesia, a subsidiary of Altice, has been contracted to carry out a majority of roll-out construction and maintenance.

Nick Read — Vodafone Group Chief Executive said: “This partnership builds on Vodafone’s significant next generation network with Altice’s industrial expertise and proven Fibre-to-the-Home construction capabilities enabling us to bring gigabit connectivity to even more customers in Germany.

“We are proud of our long-standing relationships with housing associations and pleased as a trusted provider to bring more connectivity options for tenants.

“This significant infrastructure investment supports the country’s social, economic and digital development and the broadband ambitions of the German government as part of Europe’s Digital Decade targets.”

Vodafone is anticipated to obtain cash proceeds from Altice of up to €1.2 billion, as part of the transaction, which is expected to be completed in H1 2023, subject to customary closing conditions, including regulatory approval.

Currently, Vodafone operates a next generation broadband network in Germany, offering up to 1Gbps connections to over 24 million homes.

David Drahi — Altice co-CEO said : “We are delighted and honoured to join forces with Vodafone to build and operate a FTTH network connecting up to 7 million premises in Germany. Altice’s existing presence in Germany through Geodesia, its unique track record in operating over 45 million homes with the latest very-high speed fibre networks across Europe and the US, together with Vodafone’s competitive position as anchor tenant will help us establish one of the largest FTTH ventures in Europe. We have pioneered fibre joint ventures in France and Portugal, and are thus thrilled to be able to replicate such a feat in Germany with such a partner.”

  Altice, David Drahi, FibreCo, Geodesia, Germany, Nick Read, Vodafone Germany, Vodafone Group