Orange creates fiber unit, Orange Concessions, and finds investors
Orange has created a fiber business unit, Orange Concessions. It also has agreed to sell 50% of the unit to La Banque des Territoires (Caisse des Dépôts), CNP Assurances, and EDF Invest in a deal that values the unit at 2.675 billion euros. Orange sees the move, with the sale portion scheduled to close by the end of this year, as accelerating its fiber network deployments, particularly in rural areas. Orange will have a call option that will enable it to take control and consolidate Orange Concessions in the future.
Orange Concessions operates 23 public initiative networks (PINs) representing more than 4.5 million built or to-be-built “plugs.” Orange says it will continue to exercise responsibility for fiber roll-out and maintenance for the open access networks.
“I am delighted that Orange, Europe’s leader in fiber roll-out, is now set to establish this partnership in its domestic market with recognized investors who share our vision of digital communication infrastructure development,” commented Stéphane Richard, chairman and CEO of Orange. “Through this partnership, Orange holds the means to pursue the development of fiber in rural areas, by winning new public initiative networks or by participating in market consolidation. This is a key milestone in the delivery of our Engage 2025 strategic plan.
“As to its financial merits, the achieved valuation reveals the value of Orange’s investments in fiber as well as the relevance of such strategic move,” Richard concluded.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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