The Polish incumbent Orange Polska and APG, acting on behalf of its Dutch pension fund clients, have signed an agreement to create a 50/50 joint venture.
Known as Swiatlowod Inwestycje (Optical Fibre Investments), it will operate a fibre network reaching around 2.4 million households in Poland by 2025, mainly in areas which currently lack infrastructure. Orange will contribute around 0.7 million fibre connections to Swiatlowod Inwestycje, including wholesale access to around 160,000 customers who already use its services. Swiatlowod Inwestycje will roll out 1.7 million fibre connections, thereby making the network, covering 2.4 million households, the largest independent wholesale fibre operator in Poland.
Commenting on the development, Julien Ducarroz, CEO of Orange Polska, said: “I am very pleased that we entered into a partnership with APG who shares our vision of the market potential of fibre infrastructure in Poland. Orange Polska has been conducting a very ambitious investment program during recent years, 5 million households across Poland are already within the reach of Orange Swiatlowod. The needs are still huge, and the pandemic has made them even stronger. Swiatlowod Inwestycje will help us cover the areas which still lack reliable internet access, without using the public funds. I am convinced that it will contribute to the development of the economy, digital infrastructure of the country and will fight digital exclusion”.
Patrick Kanters, MD Global Real Assets at APG, said: “APG is excited to partner with Orange Polska to enable the roll-out of fibre connections to 1.7 million households in Poland. This joint venture supports APG’s ambition to enable the digitalisation of the economy by providing high-speed fibre optic infrastructure to households that do not have high quality internet access today. Importantly, the investment is expected to deliver an attractive return for our pension fund clients”.
Swiatlowod Inwestycje will solely be a wholesale operator, meaning that Orange Polska and other third party operators will be able to access its network in order to offer retail services to their clients. Orange Polska, with its experience and technological background, will be the key technical partner providing network construction and maintenance, lease of network elements network, as well as other support services.
Maciej Nowohonski, Orange Polska management board member in charge of carriers market, said: “The agreement confirms that Orange Polska is the leader in innovative, business approach to fibre network rollout.
“Swiatlowod Inwestycje is a new business model, based not only on strong demand for fast internet in Poland, but above all on unique expertise and experience of Orange Polska in developing fibre infrastructure and providing fibre services. This is a project that will bring benefits for all – customers, operators and the entire telco market in Poland”.
The transaction is expected to close by the end of August. Proceeds from the transaction will significantly strengthen Orange Polska balance sheet and will be an important element of the new strategy that will be announced in the second quarter.
Broadband TV News notes that APG is also helping the Dutch incumbent KPN in the rollout of its fibre-optic network.