Full-service provider Magenta Telekom, which was formed in 2019 from the merger of mobile operator T-Mobile Austria and cableco UPC Austria, and French investor Meridiam have agreed to form a strategic partnership for Austria’s largest private fibre rollout initiative. By 2030 the companies will invest EUR1 billion (USD995 million) in the rollout of a fiber-to-the-home (FTTH) network to connect over 650,000 households and businesses in both rural regions and cities. The fibre network will be financed by Magenta and Meridiam, with possibilities for public funding being evaluated. The project will not rely on a minimum number of committed customers for the rollout to start, thereby guaranteeing a fast, dedicated, and flexible rollout with no additional costs or complications for local communities. Customers will receive a connection into their homes and have access to Magenta’s full product range, while the fibre infrastructure will be converted into an open network for other providers, enabling multiple companies to market and sell their products direct to consumers.
The joint venture between Magenta Telekom and Meridiam requires approval by the EC; the corresponding competition procedure has already been started and a conclusion is expected before the end of 2022. Construction is due to start this year and will be completed within six years.
In February 2022 Magenta announced an investment of EUR1 billion for its own fixed and mobile network expansion; if both projects are added, a total of EUR2 billion will be spend by the company on the expansion of gigabit-capable internet lines for up to one million new homes and businesses and 5G coverage. Magenta currently serves 1.5 million households and businesses via a hybrid fibre and coaxial cable network, and the joint venture with Meridiam will ensure that the Magenta gigabit network will reach a total of 2.5 million, or 60%, of all households and businesses by 2030.