Wholesale broadband networks are becoming all the rage in Europe, with the latest plan to offer fiber access infrastructure to retail service providers springing up in Portugal, where Altice Europe has struck up an equity partnership with Morgan Stanley Infrastructure Partners.
Under the agreement, Morgan Stanley will acquire a 49.99% in Altice Portugal FTTH, part of Altice Europe's local subsidiary MEO, for an initial payment of €1.565 billion (US$1.74 billion), with the deal set to close in the first half of next year. The agreement also includes further conditional, performance-related payments of €375 million ($418 million) in December 2021 and the same amount in December 2026.
The move was signaled in February this year as part of Altice's attempts to reduce its significant debt pile, which currently stands at €30.6 billion ($33.8 billion).
Altice Portugal, which is essentially the fiber assets of the former national incumbent Portugal Telecom (acquired by Altice in 2015), has fiber access infrastructure that passes about 4 million homes in Portugal, which according to numbers from Statista, represents almost national coverage.
Altice believes taking a former incumbent and making it a purely wholesale operation is a European first.
Wholesale fiber operations are springing up around Europe as the importance of fiber access infrastructure to national and regional digital strategies, and to the 5G plans of Europe's telcos, becomes increasingly apparent. Wholesale fiber player CityFibre has been the catalyst for a ramp in FTTH investments across the UK, while Open Fiber in Italy, Germany's Deutsche Glasfaser, Gagnaveita Reykjavikur in Iceland and SIRO in the Republic of Ireland are all building out wholesale fiber assets that are impacting broadband developments in their respective countries.
Facebook says it has developed a 'technology solution' that enables fiber to be deployed along electrical grid infrastructure in a very cost-effective way and has licensed that solution for free to startup NetEquity Networks.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.