Telefónica Wins A 5 Billion Euro Contract To Build A New Fiber Optic Network In Germany

- Oct 14, 2020-

Telefónica Wins A 5 Billion Euro Contract To Build A New Fiber Optic Network In Germany


According to Reuters, Telefonica intends to establish an optical fiber network in Germany and is currently in the final stage of negotiations. The total value of the agreement is approximately 5 billion euros. Telefónica’s infrastructure sector plans to sign an agreement with an infrastructure investor and bank at the end of this month. The bank will loan two-thirds of the funds to build a fiber-to-the-home network (FTTH: fibre-to-the-home). The remaining one-third involved equity transactions, which were negotiated exclusively by the infrastructure investor and Telefónica funds.


Telefónica Wins A 5 Billion Euro Contract To Build A New Fiber Optic Network In Germany

Just this week, Telefonica Deutschland extended its agreement to lease broadband capacity from Deutsche Telekom for 10 years.


According to the latest research of the VATM industry association, Telefónica Deutschland currently has 2.2 million retail broadband users, accounting for approximately 6.2% of the German market share, ranking fourth, second only to Deutsche Telekom, Vodafone and 1&1 Drillisch.


With the rise and development of fiber optic communication and the construction and promotion of 5G, the market demand for optical communication products and devices is exploding, and higher requirements are placed on quality and performance.


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