Swiss service providers Sunrise Communications AG and Salt Mobile SA say they have agreed to form a joint venture, Swiss Open Fiber, that will deploy open access fiber to the home (FTTH) networks in Switzerland. Swiss Open Fiber’s FTTH network will pass approximately 1.5 million homes in the next 5 to 7 years, thanks to an investment of CHF 3 billion ($3.1 billion), say the two companies.
Sunrise and Salt will own equal shares of the joint venture along with “a prospective equity partner”; once that partner is brought aboard, the two service providers will retain equal minority shares. The companies say they have begun a search for potential equity partners and financing banks, with a goal of having financing in place “in the coming months,” according to a press statement. The FTTH deployments will begin in the fourth quarter of this year, they add. The parties also have reached an agreement with Swiss open access infrastructure operator Swiss Fibre Net to support set-up of the roll out and subsequent operating activities. Sunrise and Salt say they will be customers of the joint venture.
Marc Furrer, a former head of Switzerland’s federal telecommunications regulatory agency, will lead Swiss Open Fiber. The roll-outs will focus on underserved areas of the country, particularly suburban and rural markets.
“We are excited to embark on this joint venture which will accelerate ultrafast broadband connectivity and significantly improve fiber penetration in Switzerland relative to other European countries,” commented André Krause, CEO of Sunrise. “This platform is open and transparent to the market, and we are extremely happy to have secured Marc Furrer, the most distinguished expert in the domestic market, to chair Swiss Open Fiber.”
“This project is unique of its kind, leveraging the capabilities and reach of two strong Swiss operators to create a nationwide infrastructure,” added Pascal Grieder, CEO of Salt. “Growing importance of flexible and virtual working and learning models will continue to drive the need for high-performance broadband services across Swiss households, and our initiative will facilitate such services at attractive prices. We have an ambitious roll-out plan and encourage municipalities and utilities looking into FTTH deployment to reach out to us. We are open for business.”
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