CRYSTAL FIBRE ROLLOUT

The project concerns the design and rollout of a Fibre to the Home (FTTH) broadband network throughout Germany.

The aim is to ensure FTTH fibre optic broadband coverage in rural and sub-urban areas in nearly all federal states in Germany.

The project is line with the InvestEU objective of digital connectivity.

This project addresses the market failure to invest in Very High Capacity (VHC) digital infrastructure in underserved areas as a result of the historical market power of the incumbent for basic broadband and the low interest to invest in smaller local networks on a scattered basis over the country. Moreover, it will address the market failure to invest in lower-density areas due to the high commercial risks and costs involved and the expected positive externalities by enabling more users to benefit from the access to information, digital services and better communication, which are not captured by the project returns. The project is fully in line with the EU 2030 Digital Compass targets, stating that all households should have access to Gigabit connectivity by 2030.

EIB loan will diversify the sources of financing of the borrower, which is critical in the context of a large non-recourse financing and the fact that lending market may have reached its limits in terms of sector exposure. EIB participation in the project is expected to crowd-in further lenders. The EIB loan will accelerate the Borrower's investment plan. In addition, EIB financial added-value will improve the financial sustainability of the borrower and the project. EIB provides further additionality through offering the potential option to maintain its loan after the currently foreseen maturity, subject to the project's risk profile remaining acceptable to EIB.

The project would not have been carried out to the same extent by the EIB without the InvestEU support.

Investments in fixed telecommunications projects (mainly civil works for fibre rollout) do not fall under the Annexes of the environmental impact assessment (EIA) Directive 2014/52/EU amending Directive 2011/92/EC. The related works have limited environmental effects, apart from disturbances during civil work constructions, which can be mitigated by appropriate measures.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions.