Background

Building on Meridiam’s first Austrian fibre project in Liezen, Meridiam has signed a country-wide partnership with Magenta (the second largest Internet Services Provider in Austria) in Q3 2022. Magenta is a subsidiary of Deutsche Telekom.
Meridiam and Magenta set up a project company to develop, build, operate and maintain an Austrian wide fibre network for 650,000 homes passed. Consistent with Meridiam’s wider fibre and sustainability strategy, the project will help tackle the digital divide and improve connectivity in Austria’s semi-rural and rural regions.
Meridiam will target the rollout across upper and lower Austria, Styria and Carinthia.
Meridiam has a 50.1% stake in Alpen Glasfaser Holding GmbH with Magenta retaining a 49.9% stake in the company.

Magenta is the second largest internet service provider in Austria and, as the first of the three incumbents to make a dedicated move into fibre, provides valuable market knowledge, a strong go-to market strategy and a first mover advantage.
Magenta will join the network as an internet service provider and bring a 20% take-up commitment for the first six years in return for an 18-month exclusivity period.

After this, the network will be opened for other internet service providers.

Stage: Financial Close

ESG / SDG Key Facts

Austria is lagging behind much of Europe in fibre coverage – in September 2021, Austria only had a 35% coverage, below the 48.5% for EU27+UK. The project will therefore help close the connectivity gap to other countries. The project will ensure Austria, and especially more rural areas, remain attractive for businesses, including accommodation of home office trends. High quality and fast internet will also increase productivity, foster economic growth, and enhance social cohesion.

Image rights:

1 – Markus_KR @Pixabay