Summary sheet
The project relates to the design and rollout of a Fibre to the Home (FTTH) Very High Capacity Network (VHC) coverage in rural and sub-urban areas, mostly in Central and South Germany.
The aim is to add around 226k additional homes passed to the promoter's existing network of 194k homes passed (at the end of 2023), which represents around half of the promoter's company wide deployment plan. Upon project completion, the promoter will see its network more than triple, reaching at least 629k homes passed. In terms of areas, the focus is mainly on non-subsidized areas for households with no existing access to cable or FTTH/B broadband technologies. In addition, the promoter will also offer wholesale open access services to other retail operators.
This project addresses the market failure to invest in Very High Capacity (VHC) digital infrastructure in underserved areas as a result of the historical market power of the incumbent for basic broadband and the low interest to invest in smaller local networks on a scattered basis over the country. Moreover, it will address the market failure to invest in lower-density areas due to the high commercial risks and costs involved and the expected positive externalities by enabling more users to benefit from the access to information, digital services and better communication, which are not captured by the project returns. The project is fully in line with the EU 2030 Digital Compass targets, stating that all households should have access to Gigabit connectivity by 2030.
EIB loan will diversify the sources of financing of the borrower, which is critical in the context of a large non-recourse financing and the fact that lending market may have reached its limits in terms of sector exposure. The EIB loan will accelerate the Borrower's investment plan. In addition, EIB financial added-value will improve the financial sustainability of the borrower and the project. EIB may provide further additionality being able to extend its maturity at the time of refinancing.
Investments in fixed telecommunications projects (mainly civil works for fibre rollout) do not fall under the Annexes of the Environmental Impact Assessment (EIA) Directive 2014/52/EU (amending Directive 2011/92/EC).
The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions.