UGG (Unsere Grüne Glasfaser) is an open-access wholesale neutral operator focused on deploying fibre in rural and semi-rural areas in Germany to tap the potential of Europe’s largest broadband market.
UGG is a 50/50 joint venture where Telefónica Group owns 50% (40% through Telefónica Infra and 10% through Telefónica Deutschland) and the remaining 50% is held by Allianz Capital Partners (representing Allianz insurance companies and the Allianz European Infrastructure Fund).
UGG announced a target to reach more than 2 million premises passed and has already signed agreements with municipalities representing more than 1 million households (MoU).
The agreement was signed in October 2020 and started operations in early 2021. Constructions started in February 2021 and the first retail customer was connected in June 2021. It started operations with O2 as the main client and has since reached agreements with 4 other regional ISPs, enhancing its commercial position and it currently has 0.8m PPs on construction or ready for construction (0.3m already passed).
The joint venture intends to invest up to €5 billion through different sources of funding: shareholders’ equity, a long term subordinated loan plus non-recourse external financing. Investments are spread out during the deployment period, Telefónica will invest up to €500 million in equity and Allianz investing up to €1 billion through different instruments. UGG has raised initial debt facilities for a total €1.65 billion (preferred debt for 7 years without recourse).
