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High-speed network

BBV, Primevest Capital Partners and ZTE put first fiber optic network into operation

The cooperation partners ZTE Deutschland, Primevest Capital Partners (formerly: Bouwfonds IM) and Breitbandversorgung Deutschland (BBV) are committed to privately financed fiber optic expansion. The partners have taken a major step towards their goal of closing coverage gaps in rural regions by building future-proof, high-performance networks.

On the occasion of the 20th anniversary of the VATM (Association of Telecommunications and Value-Added Service Providers), the project partners announce the completion of the first fiber optic sub-network in Bretten in Baden-Württemberg.

Germany should become a world leader in the field of digital infrastructure and implement the construction of nationwide gigabit networks based on fiber optics by 2025, according to politicians, industry and associations. VATM in particular, which is celebrating its 20th anniversary in Berlin today, has been advocating the expansion of fiber optics for years in order to make Europe's largest economy fit for the digital future. Against this backdrop, the cooperation partners ZTE Deutschland GmbH as general contractor and technology supplier, Primevest Communication Infrastructure Fund ("PCIF") as investor and the network operator BBV are rapidly driving forward the construction and expansion of fiber optic networks and were able to put the first section of a fiber optic network in Bretten near Karlsruhe into operation this week.

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110 kilometers of fiber optic cable in just six months
The gigabit age is already dawning for numerous households and companies in the city: In just six months, 110 kilometers of fiber optic cable were laid in the two districts of Ruit and Sprantal and 780 high-speed Internet connections were put into operation. "BBV experienced above-average demand during the pre-marketing of the fiber optic connections," reports Manfred Maschek, Managing Director of Breitbandversorgung Deutschland. "A contract completion rate of 75 percent in the two districts is a statement in itself and illustrates the extremely high need for action on site," says the head of the network operator. In the two expansion phases II and III, a further 8,000 households, businesses, schools and public institutions in the town of Bretten are to receive fiber optic access to the data highway by 2019.

500,000 households connected to fiber optic networks with ZTE technology
ZTE Germany, general contractor and supplier of access technology for the Bretten fiber optic network, has long been actively involved in broadband expansion in Germany and has formulated the strategic goal of promoting the development of the gigabit society in Germany. "In the coming months, around 500,000 households across Germany will be connected to fiber optic networks with ZTE technology," says ZTE Germany Managing Director Sun Jie. "As the world's second largest developer and manufacturer of broadband technologies, we consider the construction of a fiber optic infrastructure to be the most important basic framework for the implementation of future 5G mobile networks, which we absolutely need for the Internet of Things and digital networking, e.g. in transport and agriculture."

500 to 600 million euros invested in passive network infrastructure
To finance nationwide, regional fiber optic cable networks, investment manager Primevest Capital Partners (formerly Bouwfonds IM) launched the "Primevest Communication Infrastructure Fund" last year, through which between 500 and 600 million euros will be strategically invested in the development of a passive network infrastructure in Germany. "Our investors expect a secure return and fiber optic networks are a secure, long-term and future-oriented investment," explains Dr. Peter Selgert, Director Asset Management Communication Infrastructure at Primevest. "The newly built network in Bretten serves as a model for the privately financed expansion of fiber optics, which we would also like to transfer to other regions in Germany. It has proven that it fulfills the extremely high requirements and thus meets the highest quality standards of a private investor."

70 to 80 billion euros for nationwide fiber optic expansion
Private-sector financing of fiber optic networks in regions previously underserved by high-speed Internet will play a key role in Germany's path to the gigabit society in the future. However, the investment volume of 70 to 80 billion euros estimated by experts for a nationwide fiber optic expansion cannot be managed by the network operators alone.

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