Telenet and Orange Belgium have signed two commercial fixed wholesale agreements subject to the completion of VOO’s acquisition by the latter.
Valid for 15 years and covering both current HFC and future FTTH technologies in both network areas, they will remain in place independently of the evolution of the current regulated open access model. Furthermore, they will allow Telenet to access for the first time the VOO cable network in Wallonia and the remaining one-third of Brussels, which currently covers around 1.8 million homes, and thereby allow it to provide fixed-mobile converged services in the whole of Belgium.
Telenet notes that since 2016 Orange Belgium has provided fixed internet and TV services on Telenet’s HFC network through the regulated open access model. The new agreement will strengthen this existing relationship and see Orange Belgium will become a wholesale customer on Telenet’s future FTTH network at pre-agreed terms, increasing network penetration and improving the return on investment on Telenet’s investments in fibre.
It adds that upon closing of the NetCo joint venture with Fluvius, which is pending EC regulatory approval expected by summer this year, the agreement will transfer to NetCo, hence strengthening NetCo’s fundamentals and attractiveness to potential strategic and/or financial partners.
Commenting on the agreement, John Porter, Telenet’s CEO, said: “I’m pleased with the 15-year partnership we reached with Orange Belgium, building on a fruitful relationship developed over a number of years. Through the agreements, we now have a clear path to wholesale access in the south of Belgium, complementing our existing fixed footprint in Flanders, parts of Brussels and the boot of Hainaut in Wallonia in addition to our nationwide mobile network coverage. This will enable us to grow into a nationwide FMC player and provide more choice for customers. Our commercial and go-to-market strategy is far advanced and we have ambitious plans for the south, targeting an off-footprint fixed market share of around 10% over the medium term, which will enhance Telenet’s growth profile. I’m equally excited about the extended partnership with Orange Belgium in our footprint, which covers both our current HFC and future FTTH network. We welcome Orange Belgium as a wholesale customer on our future FTTH network, further increasing our network penetration and improving the return on investment and long-term profitability of our recently announced fibre investments”.
