Telcos are massively upgrading DSL to fiber, generally with minimal government support. Spain is 88% covered, France 73%. AT&T has 15 million homes passed and is adding 12 million more. British Telekom and Deutsche Telekom assert they are building as fast as possible (a politician's truth.) 52% of Europe is fibered, as you can see on the chart from the FTTH Council Europe, at left and larger below.
Fiber is good business for telcos except in areas that are very expensive to build. Brett Feldman of Goldman Sachs has initiated coverage of Frontier, with a buy.
Frontier Communications Parent Inc. (FYBR): Fiber expansion creates opportunity for material value creation; Initiate at Buy with a $42 price target 6 July 2021 |
We initiate coverage on Frontier (FYBR) at Buy, with a 12-month price target of $42 (50% upside potential). Our positive outlook on Frontier reflects a view that the telco has an opportunity to create material value as it deploys and drives penetration of its fiber network. In this note, we outline the four key success factors that support our fundamental outlook, provide an illustrative benchmarking analysis that highlights the potential for a re-rating in FYBR's equity as its fiber investments drive our forecasted improvements in revenue and EBITDA growth,
Even rural Poland is getting in the act, as pension funds are investing in fiber.
From Orange Poland in Google translation:
Orange Polska provided Światłowód Inwestycje with fiber-optic links covering approximately 672,000 households July 2, 2021 Fiber Optic Investments is planning to build more fiber optic lines for approximately 1.7 million households, which so far have not had access to ultra-fast Internet, within five years, by 2025. In total, the company will manage wholesale access to a network covering nearly 2.4 million households in the country. - According to the assumptions, Światłowód Inwestycje starts operating. The company is thus becoming a new player on the market, offering open access to its own fiber optic network - says Maciej Nowohoński, Member of the Management Board of Orange Polska for Wholesale Market. Since June 21, the company has been managed by Magdalena Russyan, who is its Member of the Management Board for Operations. - Thanks to the agreement signed in April between Orange Polska and the Dutch APG fund, we will be able to effectively finance further expansion of the optical network without public funds - says Magdalena Russyan. Together with 672 thousand. connects Światłowód Inwestycje receives wholesale access to over 170,000 customers who already use services through this network today. The company will provide open-model wholesale access on the network owned by Światłowód Inwestycje. This means that all retail operators present on the Polish market will have access to it and the ability to provide services to end users on an equal basis. This will not in any way affect the quality of services currently provided to subscribers, nor will it require any changes to their contracts with operators. - The expansion of the fiber-optic network and reaching customers all over the country with it is a matter of great importance for the development of the digital economy and society. This undertaking will allow Poles to reach out to those Poles for whom they have so far been unavailable with modern digital services. The financial model in which Światłowód Inwestycje operates makes it possible to implement such activities effectively - adds Magdalena Russyan. The source of financing for the company's investments will be mainly a bank loan in the amount of over PLN three billion. On behalf of Światłowód Inwestycje, Orange Polska operating units specialized in this field will manage the construction and maintenance of the network as well as the lease of network elements, as well as other support services. - We have already handed over the first orders for the construction of links to contractors. In the coming months, we plan to gradually increase their number so as to achieve full dynamics in the autumn - says Magdalena Russyan. - In recent years, Orange has invested heavily in the development of its fiber optic network, reaching over 5 million households throughout the country. In the following years, we want to reach new customers, more often than before using contracts with infrastructural partners, such as Światłowód Inwestycje - adds Maciej Nowohoński. According to the agreement signed in April, the APG fund is to pay PLN 1,374 million for 50% of shares in the joint venture Światłowód Inwestycje. The first tranche of PLN 887 million is to be credited to Orange Polska's accounts in the third quarter of this year, and the remaining PLN 487 million will be settled in 2022-2026 adequately to the schedule of investments. APG and Orange Polska will jointly control the company, each holding 50% of shares after the transaction is finalized.
Źródło: blog Orange Polska https://biuroprasowe.orange.pl