“This partnership with Fluvius places Telenet firmly in the driver’s seat in the Belgian market, and cements NetCo as the undisputed kingmaker with a combined retail and wholesale market share close to 60%,” said Mike Fries, CEO of Liberty Global.
Together the companies will establish a new independent self-funding infrastructure company, called NetCo, of which Telenet will own 66.8% and Fluvius 33.2%.
The investment will be financed by NetCo's cash flow as well as Telenet's €745 million from the proceeds of its recent tower sale.
The new entity will combine both companies’ fixed network assets and will invest in the development of its hybrid fibre coaxial (HFC) network into a fibre-to-the-home (FTTH) network, which aims to cover 78% of their combined footprint in Flanders by 2038.
“The partnership also highlights the effectiveness of our network strategies. By utilising a combination of the best network upgrade technologies available, we are firmly on the road to offering up to 10 gig broadband speeds in all our markets," added Fries.
"Almost 100% of Liberty Global’s networks already offer gigabit speeds to customers today, with VodafoneZiggo due to complete its work to deliver gigabit speeds across its entire network by the end of this year. Our ongoing network development strategies will enable us to extend our leadership positions in each of our core European markets.”
In addition, NetCo will also focus on upgrading the existing HFC network using DOCSIS technology where FTTH is not available.
Once operational, NetCo will operate an 'open access network' with a use rate designed to attract additional strategic and/or financial partners.
