Magenta Telekom, Meridiam form JV to drive Fibre roll-out

Magenta Telekom and French investor Meridiam have agreed to form a strategic partnership for Austria's largest private fibre roll-out initiative.

By 2030, the companies will invest EUR 1 billion in the roll-out of fibre to connect over 650,000 households and businesses to high-speed internet (FTTH).
The strategic partnership will target rural regions and cities. The fibre network will be financed by Magenta and Meridiam, with possibilities for public funding being evaluated. The project will not rely on a minimum number of committed customers for the roll-out to start. Magenta and Meridiam can therefore guarantee a fast, dedicated, and flexible roll-out with no additional costs or complications for local communities.

Customers will receive a connection into their homes and have access to Magenta’s full product range: high-speed internet, TV, and digital solutions with attractive mobile bundling offers. Furthermore, the fibre infrastructure will be converted into an open network for other providers. This way, multiple telecommunications companies will be able to market and sell their products.

In today’s digitalised environment, fibre is an essential service for full integration and social cohesion. The project will ensure rural areas remain attractive and competitive places to live and work. To ensure that the project meets the needs of the communities, a dedicated community management team will start reaching out to local mayors and stakeholders soon.

Construction is due to start this year. Furthermore, the strong partnership between Magenta and Meridiam will ensure that the connection of 650,000 new households and businesses will be completed within a record six years.

Andreas Bierwirth, CEO Magenta Telekom, said, “With Meridiam, we have found a strong partner with vast experience in working successfully with industry partners and local communities. Together we are turning the Alpine Republic into a digital republic. As Magenta, our clear strategy is to expand our position as the leading high-speed network provider. After we have upgraded our existing network to 1 Gbit/s throughout the country in recent years, we will focus fully on the expansion of the networks in the coming years. In doing so, we are not only concentrating on the big cities, but are also deliberately going into rural areas. We are expanding directly and immediately without a minimum number of customers who have to sign a preliminary contract, so we are bringing high-performance internet to the regions faster. And we offer coordination with the expansion of our mobile network. So that every community can boast the best, perfectly integrated infrastructure of fibre optics and mobile communications.“

Stephan Wehrmann, Business Development Director DACH Meridiam, commented, “Meridiam has a commitment to deliver sustainable infrastructure that improves the quality of people’s lives. The strategic partnership with Magenta to bring fibre to over 650,000 homes and businesses underlines that commitment to the Austrian people. We look forward to working with Magenta and the local communities to develop this essential infrastructure, provide access to high-quality internet, and make a long-lasting positive impact on society.”

Dominique Leroy, Member of the Board of Management for the Europe segment of Deutsche Telekom AG, said, "Austria is a very important market for Deutsche Telekom. We have been investing in the expansion of digital infrastructure for 20 years. Today we are writing the next chapter: the largest private fibre initiative in Austria to date. Deutsche Telekom stands for digital participation: through our joint commitment, 2.5 million customers will be gigabit-enabled by 2030. This is great news for customers, mayors and partners in Austria."
Magenta is Austria’s largest and fastest growing Gigabit provider

In February 2022, Magenta already announced 1 billion euros for its own fixed and mobile network expansion; if both projects are added, a total of 2 billion euros will flow into the expansion of gigabit-capable internet lines for up to 1 million new homes and businesses and 5G coverage.

Magenta is already Austria's largest and fastest growing gigabit provider with 1.5 million households and businesses served on the basis of a hybrid fibre and coaxial cable network, of which the fibre share is over 90 per cent. The joint venture with Meridiam will ensure that, the Magenta Gigabit offer will reach a total of 2.5 million (60 percent) of all households and businesses by 2030. The largest gigabit network in the country will remain the leader for ultra-fast internet in the future.

Meridiam active in Austria since 2005

Meridiam specializes in the development, financing, and long-term management of sustainable public infrastructure in three core sectors: sustainable mobility, critical public services and innovative low carbon solutions. Meridiam has held close ties with Austria since 2005 when it first partnered with ASFINAG to finance and operate the A5 motorway north of Vienna. Meridiam has also already committed to invest more than €150 million to connect up to 60,000 households in Styria’s Liezen district to high-speed fibre internet through a 50-year contract with the local municipality.

Meridiam also has strong and demonstrated experience in the fibre space outside of Austria. With further investments in Germany, Romania and North America, Meridiam has committed over EUR 1.7 billion to connect of over 1.5 million households to high-speed internet worldwide. All of Meridiam’s projects in this space focus on connecting underserved people to high quality internet with the ambition of closing the broadband gap between communities and the most globalized and digitalized urban centres. All projects are implemented in close cooperation with local municipalities and with close regard for the needs of the community.

EU approval procedure started

The joint venture between Magenta Telekom and Meridiam requires approval by the EU Commission. The corresponding competition procedure has already been started and a conclusion is expected before the end of 2022.