Tuesday, July 19, 2022

Telenet and Fluvius establish FTTH/HFC infrastructure JV NetCo

Telenet establishes 66.8/33.2 JV NetCo with Fluvius System Operator:

  • To migrate from HFC to 'network of the future' (incl. FTTH, target 78% coverage in Flanders by 2038; plans Docsis upgrade in remaining areas, Docsis 4.0 from 2024), target 10 Gb/s.
  • Total capex EUR 2.0b (most 2023-2029; 650 EUR/home (excl capex for connection) for FTTH for >50% of homes), fully financed, leverage target 5.0x (i.e. net debt EUR 2.4b).
  • Both to contribute current HFC & fiber assets, Telenet to contribute 170 employees (to hire 50 more), Fluvius to contribute lease to Telenet until 2046 (covers 1/3 of Flanders), to end on closing of JV early 2023.
  • Open for additional investors.
  • To provide open access wholesale on non-discriminatory basis, to launch with near 60% occupancy.
  • To be fully consolidated.
  • Net debt to be reduced by EUR 500m (0.4x) on ending Fluvius lease, to maintain leverage at 4.0x.
  • Lowers dividend pay-out floor to 1.00 EUR/yr for 2023-29 (payable in May after AGM) from currently 2.75 EUR/yr.
  • Capex to drop strongly after 2029.
  • Plans CMD end Sep 2022.
  • Current data usage on fixed average 239 GB/mo.


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