Target Information

Altitude Infra is a prominent player in the French fibre-to-the-home (FTTH) market, holding approximately 30% of the market share within the Public Initiative Networks (PIN) areas. The company manages and operates 27 distinct infrastructure networks established under the PIN scheme, extending service to over five million homes across France. As the exclusive wholesale provider of FTTH fibre in its subsidized rural networks, Altitude Infra has successfully completed about 70% of its planned fibre rollout, ensuring robust connectivity in underserved regions.

Industry Overview in France

France's telecommunications industry benefits from a well-structured regulatory framework that promotes the widespread deployment of FTTH technology. ARCEP, the national telecom regulator, has implemented a strategic initiative aimed at achieving full FTTH rollout by 2025. This initiative is designed to improve connectivity, especially in rural and underserved areas, where access to high-speed internet is often limited.

The market is characterized by a competitive landscape, with significant players including Free, Bouygues Telecom, Orange, and SFR, all of which procure broadband and network services from providers like Altitude Infra. This competition fosters innovation and pushes service providers to enhance their offerings continually.

As of now, France has made substantial investments in its telecommunications infrastructure, which bodes well for future growth. The rise in demand for high-speed internet services, driven by increasing consumption of data-driven applications and remote work, reinforces the necessity for robust fibre networks across the nation.

The ongoing economic recovery post-pandemic is also expected to fuel further investments in digital infrastructure, positioning France as a lucrative market for fibre investment opportunities.

The Rationale Behind the Deal

This investment represents a strategic opportunity for InfraRed Capital Partners to enhance its portfolio in the rapidly growing fibre sector. By acquiring a stake in Altitude Infra, InfraRed can leverage the company's extensive reach in the FTTH market while also contributing to the vital development of digital connectivity in rural France.

The deal aligns with InfraRed’s broader strategy of targeting sustainable and essential infrastructure investments, which not only promise steady returns but also serve a critical public service need.

Information About the Investor

InfraRed Capital Partners is a reputable international infrastructure investment manager based in London, with additional offices in New York, Sydney, and Seoul. The firm has over 190 professionals dedicated to managing more than $14 billion in equity capital for a diverse range of global investors. InfraRed has cultivated a strong track record in developing and maintaining infrastructure assets that directly benefit communities.

With a focus on sustainable investment, InfraRed has been a signatory of the Principles of Responsible Investment since 2011. The firm has consistently earned high marks for its commitment to ESG principles and has integrated these considerations into its investment strategies, further strengthening its reputation in the infrastructure sector.

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This investment in Altitude Infra appears to be a promising opportunity for InfraRed Capital Partners, given the French government's push towards full FTTH implementation by 2025. The stable demand for broadband services amid rising digital consumption makes this sector particularly attractive for long-term investments.

Altitude Infra’s existing infrastructure, combined with ongoing growth in the telecommunications market, provides a solid base for return on investment. Moreover, the inflation-linked revenue model offers additional financial security, making this a valuable addition to InfraRed's portfolio.

Furthermore, the alignment of this investment with InfraRed's sustainability goals and its dedication to enhancing digital infrastructure underscores a well-considered move into a sector poised for growth. Overall, given the strategic importance of telecommunications in contemporary society, this deal is likely to yield positive results over time.

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