GERMANY’S FIBRE-OPTIC MARKET IN TRANSITION
The logic of ‘homes passed’ first, monetisation later is faltering. Fibre-optic companies must reassess their operational and legal options to secure a future in the market.
For more than a decade, the roll-out of fibre-optic networks in Germany was regarded as a prime example of a capital-intensive growth story. The narrative was clear: ‘Homes passed’ first, monetisation later. Those who build quickly and secure territory will win. Since 2024, this logic has visibly begun to falter.
Although the availability of fibre-optic connections has exceeded 50%, the profitability of the business model remains, for many operators, well below the assumptions set out in their business plans. The crisis in the fibre-optic sector is not due to a single cause, but the result of several mutually reinforcing factors.
INTEGRATING OPERATIONAL AND LEGAL RESTRUCTURING
The fact that fibre-optic cases are now landing on the desks of both banks and lawyers simultaneously is no coincidence, but rather the hallmark of these restructurings: they are always both a balance sheet event and a legal event.
Capital structures verging on over-indebtedness, subordination agreements, and the threat of write-downs, right up to the valuation of equity at zero, raise the question of recapitalisation and a new financing architecture. Directors’ duties, creditor majorities, funding conditions, and regulatory requirements define the legal framework within which any solution must be viable.
Thus, a solution that is purely financial, purely operational, or purely legal falls significantly short. Against this backdrop, Dr Maximilian Eberl and Carl Schoenaich-Carolath, together with Dr Ulrich Klockenbrink and Dr Hendrik Hauke of Willkie Farr & Gallagher, analyse the transition in the fibre-optic market from operational and legal perspectives in a joint white paper.
What's Inside?
- Overview of the current state of the German fibre-optic market
- Analysis of the causes of the industry crisis such as marketing gaps, duplicate roll-out, and fragmentation
- Hypothesis on the coming wave of restructuring and strategies for success
- Corporate, restructuring, and M&A legal dimensions
- Recommendations for decision-makers in fibre-optic companies and investors
DOWNLOAD THE WHITE PAPER
Explore the operational and legal dimensions of Germany’s fibre-optic market in transition, with viable prospects for fibre-optic companies and their investors.
ABOUT HASELHORST ASSOCIATES
Haselhorst Associates is one of the leading restructuring consultancies in Germany and part of the growing H&Z Group. The team of around 40 internationally experienced consultants and partners provides end-to-end support to companies in exceptional circumstances, from analysis through to the restructuring plan and its operational implementation.
CONTACT OUR EXPERTS
Dr Maximilian Eberl
Carl Schoenaich-Carolath
