We concluded that the open access model was optimal to pursue rollout in low- and mid-competition areas. It allows us to maximise customer take-up in both wholesale and retail and to prevent potential overbuild by other infrastructure providers. In addition, we saw an active interest in the telecom industry of funds ready to invest for a very long term in infrastructure projects.
In a transparent and competitive process we selected APG as the best partner for the joint venture. Equally important was selection of financing banks. The debt facility covers more than 80% of the total network rollout capex estimated at PLN 3 billion until 2025. The financing was provided at no recourse to Orange Polska.
Important to the negotiations were agreements detailing co-operation between Orange Polska and the JV. Orange Polska is a natural anchor tenant for S-I services (but there is no commitment from the Company regarding any minimum purchase of services) and the key industrial partner. The latter is quite natural as we have been building fibre for the previous six years and we are by far the most experienced in this area in Poland. This covers not only technical aspects but also equally important know-how regarding dealing with local authorities, infrastructure owners and different legal bodies. We guarantee network construction within a fixed budget.
Preparation and implementation of this very complex and transformational start-up-like project involved a lot of different Orange Polska teams, who were highly motivated to deliver its success.
