Fiberglass construction - The city of Hamburg subscribes to Willy.tel.
The city Hamburg has acquired 49.9 percent of telecommunications company Willy.tel. The city expects to accelerate the expansion of the fiber-optic network with this takeover, as Finanzsenator Andreas Dressel (SPD) stated. The goal is to add more than 100,000 additional connections by 2034. "This is an ambitious plan," Dressel acknowledged. Willy.tel is already active in 80 of Hamburg's 104 districts.
For the acquisition, a company value of 178 million Euro was determined, making the city's costs approximately 89 million Euro, according to Dressel. The Senate will discuss the deal with the citizens after the summer break and make the final decision.
50 percent of households already equipped with fiber
"This is a partnership for the fiber-optic expansion," said Dressel. In Hamburg, 68 percent of households are fiber-optic ready, and 50 percent are actually connected. Schools and the administration are already fully equipped with fiber. "We are doing very well in the city comparison. We are ahead of Munich, significantly ahead of Cologne, and even more so in the nationwide comparison, and especially ahead of Berlin," said Dressel.
The city wants to push forward the fiber-optic expansion, Dressel also mentioned an existing citizens' resolution. Fiber has nearly unlimited transfer rates and is more energy-efficient than mobile phone and satellite technology in terms of internet access. The basis of the partnership is the existing network of the Hamburg company. Dressel emphasized that other fiber-optic companies would not be disadvantaged.
Planned investment costs amount to around 500 million Euro
The company and the city plan to invest approximately 500 million Euro for the fiber-optic expansion by 2034. The larger part of these costs will be generated through the operational business of Willy.tel. The remaining capital requirement of up to 200 million Euro will be financed with 70 percent foreign and 30 percent own capital.
Willy.tel-Managing Director Bernd Thielk stated that the Thiele Group's companies are long-term oriented. Therefore, it would never collaborate with "Private Equity or any funds." Originally founded in 1990 under the name Thiele Kommunikationstechnik GmbH, Willy.tel received its current name in 2008. The company claims to supply more than 150,000 households through its own and independent fiber-optic network. Willy.tel is a preferred supplier for the housing industry. This includes, among others, 21 Hamburg housing cooperatives and over 600 housing management companies.
CDU: Acquiring shares in a private company not understandable
The CDU opposition expressed confusion. It's good that the Senate is finally focusing more on the fiber-optic expansion, said the spokesperson for the budget and public companies, Thilo Kleibauer. "But why the city is buying significant shares in a private company is not understandable." State company participations in private business competition always require a special justification. "Therefore, the Senate's announcement today raises numerous budget and competition law questions that need to be clarified."
- In Munich and Cologne, the percentage of fiber-optic ready households is lower than in Hamburg, as acknowledged by Finanzsenator Andreas DRESSEL.
- To finance the remaining capital requirement of up to 200 million Euro for the fiber-optic expansion, Willy.tel-Managing Director Bernd Thielk mentioned that 70% will come from foreign capital and 30% from their own.
- The SDP-led Senate in Hamburg aims to expand the glassfiber connection in the city, with a goal to add more than 100,000 additional connections by 2034, using the expertise of telecommunications company Willy.tel.
- Fiberglass construction, which forms the basis of the fiber-optic expansion, offers nearly unlimited transfer rates and is more energy-efficient than mobile phone and satellite technology for internet access, as pointed out by Finanzsenator Andreas Dressel.
- Telecommunications companies in Cologne and other cities might not be disadvantaged due to the partnership between the city and Willy.tel, with Dressel emphasizing the importance of fair competition in the industry.
