Spanish telecom giant Telefonica is aiming to strike a partnership with the private equity branch of German insurance company Allianz that would see them enter a joint fiber optic venture worth around €5bn (£4.5bn, $5.8bn).
According to a report by Spanish publication Expansion, the joint venture, half-owned by each, will look to invest in fiber optic network infrastructure in remote areas and regions within Germany.
Should this deal come to fruition, it’ll aim at building a network covering up to two million homes with fiber connectivity in small cities, the newspaper said while citing unidentified sources.
This is the second time a deal between the operator, which runs one of Germany’s biggest mobile operators, and the German insurer comes to light in recent weeks; Reuters had earlier reported that Telefonica was in late stages of negotiating a deal with banks and an unidentified investor to build the infrastructure.
Both companies have refused to comment on the venture as of yet.
Earlier in June, Telefonica Deutschland announced that it will commence its multi-million Euro efforts of constructing its 5G core mobile network in Germany using equipment by Swedish telco Ericsson and data residing on AWS serves in Germany, through AWS Outposts.
According to the company, the core network will integrate full cloud compatibility, which would allow it to handle increasing traffic and data volumes.
Should this venture become a reality, it would expand Telefónica’s footprint in Germany at a time when its competitors are venturing into service beyond traditional mobile.
Back in September, Deutsche Telekom launched an upgraded fixed-mobile tariff, as part of a wider push around convergence. Vodafone Germany, meanwhile, has also made a major push using cable assets it acquired in the country from Liberty Global in 2019.