Telefónica is selling part of its copper network to the Macquarie fund for 200 million euros.
It might seem a curious transaction, as the copper access lines are described as “obsolete infrastructure.” It is not clear how many access lines are part of the deal.
But Macquarie plans to upgrade those copper lines with optical fiber access, betting it can assure itself a long-term stable source of cash flow, functioning as an alternative asset in its portfolio.
Separately, many other telcos with copper assets have concluded they need to upgrade copper access to fiber-to-home rapidly, as a matter of protecting asset value and revenues. In substantial part, all internet access providers are having to consider similar moves to keep pace with the competition, including BT and Virgin in the United Kingdom, for example.
In May 2021, for example, 40 percent of U.K. homes (11.6 million) had access to gigabit-capable broadband, according to Ofcom. About 24 percent were covered by FTTH access facilities, according to S&P Global Intelligence.
As BT steps up its FTTH deployments, competitors believe they must get there first, or get there to stay competitive.
No comments:
Post a Comment