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56-2016 Orange Polska agreed on the terms of an agreement with Inea S.A. on the commercial access to the network infrastructure owned by the latter

Current report 56/2016

Orange Polska S.A. – Warsaw, Poland

23 December 2016

 

Pursuant to Art. 17, clause 1 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC, the Management Board of Orange Polska informs about agreed terms of an agreement.

 

Orange Polska agreed on the terms of an agreement withInea S.A. on the commercial access to the network infrastructure owned by the latter.

 

On December 23, 2016, Orange Polska S.A. (“Orange Polska”) and Inea S.A. (“Inea”) agreed on the terms of an agreement (“the Agreement”) on co-operation in the following areas:

 

·         access to the fibre local loop (LLU) in the FTTH technology;

·         access to other infrastructure elements (installation space in Inea’s access cabinets, backhaul network), as required to provide access to the fibre local loop (LLU).

 

Pursuant to the Agreement, Orange Polska will gain potential access in the FTTH technology to over 110,000 households located mainly in Poznań (over 80% of the coverage) as well as Konin, Szamotuły and Środa Wielkopolska. Under the Agreement, Inea is to gradually upgrade a portion of its network from FTTB to FTTH in 2017–2018.

 

The terms of co-operation are similar to those of Orange Polska’s commercial wholesale offer for this type of services. Orange Polska will pay exclusively for the infrastructure elements used, while in case of Inea’s last mile (LLU), the charges will depend on the number of active customers.

 

Similarly to an agreement with Telefonia Dialog (a subsidiary of Netia S.A.), which was concluded in July 2016, the Agreement supports the implementation of Orange Polska’s strategic plan of expansion of FTTH coverage to Polish households in 2016-2018 within the capex limits declared.

 

Orange Polska will benefit from the Agreement mainly in faster access to the access network in the FTTH technology as well as further vindication of its business objectives with the efficient use of the existing FTTH infrastructure in the relevant locations. Furthermore, the current development is in line with the aims of the Cost Directive of the European Commission by avoiding duplication of the existing facilities.

 

The commercial launch of the Orange Fibre services in initial locations within the area covered by the Agreement is expected in the first quarter of 2017.

 

 

The formal endorsement of the Agreement documents, including all representations and warranties of the Parties, is expected in the coming few days.

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