Proximus and Telenet are working on a deal for cheaper fiber optic

There is a real chance that Proximus will join forces with its Flemish competitor Telenet, via the Wyre alliance, for joint investments in fiber optic. Proximus gives it priority over a deal with Orange for the south of the country.

About a quarter of a century after the first fiber optic hype in our country, many streets are being opened up again to install such cables for super-fast data connections. The listed telecom group Proximus alone

invests around 10 billion euros in it. Also Wyre (the Flemish network alliance of Telenet and the distribution system operator Fluvius), Orange Belgium

and the newcomer Digi Belgium are working on it, although the latter is to a lesser extent.

The numerous and expensive excavation works, especially in less densely populated areas, have made operators call for more cooperation for some time. The telecom regulator BIPT formally opened the door to this last fall: telecom companies are allowed to jointly install fiber optic cables under certain conditions, but with the approval of the regulators. That was seen as one at the time game changer. The deadline for registering cooperation agreements is May 15.

De Tijd learned from several sources in the sector that mainly the three traditional players – Proximus, Telenet with its 67 percent stake in Wyre, and Orange Belgium – are sitting at the table with each other with a view to deals. Digi Belgium, the alliance of the Romanian Digi and Cegeka telecom subsidiary Citymesh, is not really an important party in the discussions. The new kid on the block has very limited fiber optic activities and therefore does not have much to offer compared to the established names in the sector.

Fiberklare and Unifiber, Proximus’ joint ventures with foreign parties for less densely populated parts of the country, are also barely involved in the negotiations. According to our information, heavyweight Proximus is talking to Wyre for Flanders and to Orange Belgium for Wallonia, which took over Telenet counterpart Voo. In Brussels, the national operator is fully committed to its own fiber optic network.

Now that the deadline is approaching, an agreement seems to be emerging between Proximus and Wyre. The talks appear to be well advanced. Some sources say both are close to an agreement. “It looks pretty good,” you can hear. ‘Premature’, however, says someone else. “Some principles and principles may already have been established, but the details will take time,” says another source.

Broadly speaking, Flanders is divided into three zones: the A zones with the (large) cities, the B areas that are less densely populated and the C regions with the most rural parts, where fiber optic is the most expensive. A possible deal seems to mainly concern the B areas. The more expensive C regions may be discussed later. There is a chance that the new Flemish government will be involved in these discussions. Another point of discussion is the correct demarcation of the zones.

In any case, Proximus gives priority to Flanders and a possible deal with Wyre. There are parallel discussions with Orange Belgium, but according to our information the pressure to reach an agreement there is less. “Wallonia is simply less important in terms of impact,” says a well-placed source. ‘But the principles of the file are the same as in Flanders.’

May 15 is not a hard deadline. BIPT announced in a notice to the market last year that it is prepared to reconsider that date ‘if the operators indicate that they intend to complete (an) agreement(s) within a reasonable period after that date’ . De Tijd learned that extra time is still an option.

A source also suggests the scenario that an agreement is concluded in phases. ‘A first deal does not have to be total and detailed.’ In any case, it is a complex file: in addition to BIPT, the Belgian Competition Authority is also involved, as are the media regulators of the communities. BIPT declined to comment, just like Wyre and Proximus.

Proximus’s share price has been under pressure for some time, partly due to investor concerns about expensive fiber optic investments. A cooperation agreement can change that.