Deutsche Telekom, IFM Investors form fiber joint venture

Germany's Deutsche Telekom AG and IFM Investors Pty. Ltd., owned by a group of Australian pension funds, created a joint venture to bring fiber-to-the-home broadband to rural areas in Germany, according to a Nov. 5 announcement.

IFM Investors, through its IFM Global Infrastructure Fund, will own 50% in the new company, named GlasfaserPlus GmbH, for €900 million.

The joint venture, subject to regulatory approvals, aims to deliver gigabit-capable fiber broadband to more than four million rural households from 2022 to 2028.

GlasfaserPlus will operate its fiber network under an open access model, making it accessible to Deutsche Telekom and rival operators on a non-discriminatory basis. The company will also take part in government subsidy tenders.

Upon completion of the transaction, Deutsche Telekom will strike a wholesale agreement with GlasfaserPlus.

The announcement came after the German telco's supervisory board approved the fiber optic joint venture.