Telefonica could be set to team with the private equity arm of German insurance company Allianz, with the aim of creating a joint venture to invest in network expansion across the country, Expansion reported.
The operator, which runs one of Germany’s biggest mobile operators, is reportedly looking to seal an alliance with Allianz to invest in fibre infrastructure in underserved regions of the country through a 50:50 joint venture.
This would aim to build a network covering up to 2 million homes with fibre connectivity in small cities, Expansion stated, citing unidentified sources.
If it materialises, the move would see Telefonica expand its presence in Germany at a time when its rivals have also begun to push more services beyond traditional mobile.
Telefonica Deutschland already offers fixed services, although it is through a wholesale deal with market leader Deutsche Telekom.
Last month, 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.
It is unclear at this stage if Telefonica Deutschland would bundle a potential fibre launch with its mobile operations.
News of the potential Allianz alliance follows a Reuters report last week stating the operator was in the final stages of negotiating a deal with banks and an unnamed investor to supply fibre connectivity to underserved regions in Germany.Subscribe to our daily newsletter Back