Allianz Capital Partners and Spanish telecommunications company Telefónica have formed a partnership company to invest up to €5bn to expand fibre-to-the-home (FTTH) network in Germany.
The newly created company will be 50% owned by Allianz and Allianz European Infrastructure Fund with Telefonica holding the remaining stake via a 40% holding by its infrastructure arm and a 10% stake through its Telefónica Deutschland subsidiary.
Subject to regulatory approval, the company plans to invest up to €5bn via different sources of funding over a period of six years to build a 50,000km fibre network. Telefónica will invest up to €0.5bn equity and Allianz will invest up to €1bn through different instruments.
The joint venture will act as an independent wholesale company to deploy fibre optic networks across Germany, the partners said, adding that it will also offer FTTH wholesale access to telecommunications providers.
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