BONN (dpa-AFX) - Deutsche Telekom (DTEGY.PK) and energy and telecommunications company EWE signed a contract that establishes a joint venture between the two companies, representing the next step in their collaboration. The joint venture is called 'Glasfaser NordWest' or 'NorthWest Optical Fiber' in English.
Glasfaser NordWest aims to provide up to 1.5 million households and business locations with fast internet. The company will be active in parts of Lower Saxony, North Rhine-Westphalia, and Bremen. All customers will be offered fiber to the home (FTTH). The two partners expect to invest up to two billion euros over an approximately ten-year period.
Deutsche Telekom noted that the joint venture does not have an expiration date. Deutsche Telekom and EWE had already signed a non-binding declaration of intent in December 2017, signaling interest in the joint venture. The two companies plan to register the joint venture based in Oldenburg as soon as they receive approval from the cartel office.
The two partners will build the infrastructure through a competitive selection process, acting as general contractor. In the first two years after the joint venture is founded, Glasfaser NordWest will designate the expansion areas in advance.
The two parent companies, Deutsche Telekom and EWE, will carry out the upgrades. After this period, Glasfaser NordWest will also offer the expansion areas for bidding by third parties through a selection process. Once the lines have been laid, EWE, Deutsche Telekom, and all other interested telcos will compete directly for the respective customers.
Fiber-optic lines will become available to the first customers in the expansion area in 2020.
Copyright RTT News/dpa-AFX
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