Deutsche Telekom is offering investors stakes in a company it is creating to overhaul Germany’s internet cables to help foot the bill for much-needed network modernisation, three people familiar with the matter said.
The deal is part of a German bid to catch up with other European countries such as Spain, which has outpaced Europe’s industrial powerhouse by laying high-tech glass fibre cables while Germany is mainly stuck with old-fashioned copper lines.
Deutsche Telekom, Germany’s main telecoms company, has come under increasing pressure to act quickly as the coronavirus pandemic has forced more people to work from home and rely on fast, stable internet connections.
The sources told Reuters that Deutsche Telecom and its adviser Deutsche Bank are targeting investors such as Dutch funds APG and PGGM and Canada‘s Brookfield and CDPQ, as well as sovereign wealth funds.
Deutsche Telekom’s initial plan is to roll out fibre cables to 4 million households and investors will be offered stakes equivalent to up to half of the project’s equity, the sources said. Further extensions of the network are likely.
The German company is following the strategy adopted by rivals, such as Spain’s Telefonica, which have struck similar deals with investors to help pay for network upgrades.
Deutsche Telekom, Deutsche Bank and the prospective bidders all declined to comment.
At the same time, the German telecoms giant is kicking off the sale of its T-Mobile Netherlands business to cut its debt and free up cash for investment in infrastructure.
Deutsche Telekom is a laggard when it comes to fibre as it bet on improved copper cables to supply internet connections and only switched to focusing on faster fibre cables in 2019.
Its move is part of a trend among German companies of turning to foreign investors to fund parts of the infrastructure that keeps the wheels of industry whirring, such as energy.
Power network 50Hertz, for example, is now majority owned by Belgium’s Elia while gas-power firm Open Grid Europe is part-owned by Australian investor Macquarie.
Investment by China, however, is viewed sceptically. When China’s State Grid wanted to take a stake in 50Hertz in 2018, German state lender KfW prevented the move.
Fibre networks are typically financed with 30% equity and 70% debt and Deutsche Telekom is looking for investors to contribute half of the equity with it providing the rest.
Telefonica struck a deal in October 2020 with German insurer Allianz to develop a fibre optic network in Germany for 2.2 million households in a project valued at 5 billion euros ($6.1 billion).
Assuming a similar valuation, Deutsche Telekom’s project to supply about 4 million households would be worth some 10 billion euros, meaning investors would need to contribute 1.5 billion euros, or half of the 30% equity.
At its capital markets day in May, Deutsche Telekom Chief Executive Tim Hoettges underlined the company’s commitment to accelerating the rollout of fibre in Germany, taking it from 600,000 households last year to 2.5 million in 2024.
He said the company plans to invest 2.5 billion euros a year in fibre infrastructure.
DUTCH MOBILE SALE
Deutsche Telekom’s plan would still leave it trailing countries such as Spain and Sweden, where more than 60% of homes already get their internet via fibre cables. In Germany, only 5% of homes have fibre, slightly lower than Italy.
Deutsche Telekom executive Dominique Leroy has said its goal is to reach 10 million households with fibre by the end of 2024 and that it would seek partnerships where it makes sense.
While Deutsche Telekom is preparing to invest billions, it is also faces a large bill to exercise options to raise its holding in T-Mobile U.S. to more than 50% from 43%.
However, it is already saddled with 130 billion euros of debt and is now selling businesses to reduce the pile.
First in line is its subsidiary T-Mobile Netherlands, which is estimated to be worth up to 5 billion euros. The Dutch mobile business has 6.8 million customers and its sales last year came to 1.9 billion euros.
Deutsche Telekom’s adviser on the deal, Morgan Stanley, has sent out first information packs to prospective bidders asking for offers by the end of July, people familiar with the process said.
Suitors including buyout groups KKR, EQT and Warburg Pincus are expected to take part, as is French telecoms entrepreneur Xavier Niel, the people said.
Warburg Pincus, which employs former Deutsche Telekom CEO Rene Obermann, came close to buying the business in 2015.
Morgan Stanley and the potential bidders all declined to comment.
Once that sale is out of the way, Deutsche Telekom may look to sell its telecom towers division, the people said, adding that while conversations with banks are taking place no decision has been taken.
($1 = 0.8248 euros)
(Editing by John O’Donnell and David Clarke)
Canada’s wildfires could cost billions, kill thousands if nothing is done: report – Global News
Western Canada must urgently address the threats posed by highly destructive wildfires or face deadly and costly consequences, says a group of forest and environmental experts from British Columbia and the United States.
The experts, including Mathieu Bourbonnais, assistant professor of earth and environmental sciences at the University of B.C. Okanagan, predict devastating wildfires like those currently burning in B.C. will be “commonplace” by 2050.
The group has released a paper predicting billions of dollars spent on suppression and indirect costs from the fires _ as well as hundreds or thousands of premature deaths each year due to smoke exposure _ ifaction isn’t taken to address climate change and the “daunting” scale of fuel, such as fallen trees and dead vegetation, that’s built up.
“If you look at record-breaking seasons, we’ve spent hundreds of millions of dollars on fire suppression,” said Bourbonnais, a former wildland firefighter from Alberta.
Concerns about the adverse effects of B.C. wildfire smoke pollution
“You can think about, if you spread that out over a couple of seasons, how may communities we could be engaged with on protecting watersheds, protecting drinking water sources, the communities themselves, high-value infrastructure, the ecosystems,” he said in an interview. “By doing that, we’re investing in a future that hopefully we don’t need to spend those kind of dollars on fire suppression.”
The group’s paper suggests creating patches of space in the forest that contain less flammable material, a strategy that can also boost the efficacy of fire suppression efforts, said Bourbonnais.
“Rather than crews responding to a fire with nothing but fuel in front of them, there are natural fire breaks, there’s old prescribed burns that help slow the fire down.”
Asked about the paper, the director of fire centre operations for the BC Wildfire Service said there was recognition of the work that needed to be done with communities as well as reducing fuel in the forests following historic wildfire seasons in 2017 and 2018.
“I’m part of many different planning tables and discussions within this province and within this ministry on how do we do this better,” Rob Schweitzer told a news conference on Thursday.
“Through prescribed fire, through utilization of Indigenous traditional knowledge in use of fire, as well as amending our forest harvesting practices and the woody debris left behind, are all pieces that we continue to discuss and actually start to change policy and implement new strategies to help reduce that amount of fuel.”
South Okanagan couple loses home to Nk’Mip Creek wildfire
About 1,250 wildfires have charred 4,560 square kilometres of bush since the start of B.C.’s fire season in April, compared with the 10-year average of 658 fires and about 1,060 square kilometres burned over the same time period, Schweitzer said.
Three dozen of the 245 wildfires that were burning in B.C on Thursday were considered either extremely threatening or highly visible, including a 655-square-kilometre fire north of Kamloops Lake that prompted an evacuation order for nearly 300 properties.
There were 28 states of local emergency and more than 60 evacuation orders covering 3,443 properties on Thursday. Nearly 90 evacuation alerts covered 17,679 properties, where residents were told to be ready to leave at a moment’s notice, said Pader Brach, executive director of regional operations for Emergency Management BC.
The number of daily new fires has subsided this week, Schweitzer said.
Concern over long-term impact of Ontario wildfires
But higher temperatures are expected to contribute to “severe burning conditions” in B.C.’s southern half, he added. The forecast should bring more fresh air to the Interior, he said, fuelling a “short-lived increase in fire growth” but also aiding firefighting efforts by air, which have been hampered by smoky skies.
The service also anticipates some lighting this weekend, Schweitzer said, and crews are standing ready if new fires start.
Environment Canada issued heat warnings stretching across B.C.’s southern Interior, inland sections of the north and central coasts, as well as the south coast and parts of Vancouver Island. The wildfire service warns the combination of high temperatures and low relative humidity will make fires even more intense.
© 2021 The Canadian Press
Northern Canada may be a popular destination at the end of the world – CTV News
In the event of societal collapse, researchers suggest northern Canada may be “habitable” and could act as a lifeboat, but that other countries are better suited for survival.
The researchers found that Earth is in a “perilous state” due to rapid population growth and an energy consuming society that has altered the Earth’s system and biosphere. They say that societal collapse could happen in various forms, including economic collapse, worsening climate catastrophe, a pandemic worse than COVID-19, or another mass extinction event, which the researchers say is already underway.
The goal of the study, published in the journal Sustainability on July 21, was to create a shortlist of nations that could host survivors in the event of a societal collapse, where civilization could start over. The researchers evaluated the land, how much was available and its quality, how easy or difficult it is to travel to the country, available renewable resources, climate and agriculture, to determine where it would be best to survive the end of the world.
Islands with low population density, particularly those with distinct seasonal changes, fared the best with New Zealand topping the list. Iceland, U.K., Australia (specifically Tasmania) and Ireland made up the rest of the shortlist where it would be best for society to restart after a collapse.
Northern Canada, while not on the shortlist, could act as a “lifeboat” in the event of societal collapse due to climate change and extreme temperatures, but survival would rely on maintaining agriculture and renewable energy sources to keep the population alive.
The researchers showed that the shortlisted countries had strong renewable energy sources, were in temperate climates, and have plenty of agricultural land and space for growth. In the case of Iceland, where suitable land for livestock is not in abundance, this downside is offset by fisheries and the island’s wealth of renewable resources, of which geothermal resources have already been widely developed.
While this may give Canadians living in northern regions a chance to breathe a sigh of relief, there are still zombie fires to contend with as climate change warms the north and shortens winters.
Coronavirus: What's happening in Canada and around the world – CBC.ca
Health authorities in Thailand are racing to set up a large field hospital in a cargo building at one of Bangkok’s airports as the country reports record numbers of coronavirus cases and deaths.
Other field hospitals are already in use in the capital after it ran out of hospital facilities for thousands of infected residents. Workers rushed to finish the 1,800-bed hospital at Don Mueang International Airport, where beds made from cardboard box materials are laid out with mattresses and pillows.
The airport has had little use because almost all domestic flights were cancelled two weeks ago. The field hospital is expected to be ready for patients in two weeks.
The quick spread of the delta variant also led neighbouring Cambodia to seal its border with Thailand on Thursday and order a lockdown and movement restrictions in eight provinces.
-From The Associated Press, last updated at 6:30 a.m. ET
What’s happening in Canada
What’s happening around the world
As of early Thursday morning, more than 196 million cases of COVID-19 had been reported worldwide, according to Johns Hopkins University. More than 4.1 million deaths had been reported.
In the Asia-Pacific region, Tokyo reported 3,865 new cases on Thursday, up from 3,177 on Wednesday and double the number it had a week ago. Japan’s Chief Cabinet Secretary Katunobu Kato told reporters the new cases are soaring not only in the Tokyo area but also across the country. He said Japan has never experienced an expansion of infections of this magnitude.
The World Health Organization’s Africa director says the continent of 1.3 billion people is entering an “encouraging phase after a bleak June” as supplies of COVID-19 vaccines increase. But Matshidiso Moeti told reporters on Thursday that just 10 per cent of the doses needed to vaccinate 30 per cent of Africa’s population by the end of 2021 have arrived. Some 82 million doses have arrived in Africa so far, while 820 million are needed.
Less than two per cent of Africa’s population has been fully vaccinated, and the more infectious delta variant is driving a deadly resurgence of cases.
“There’s a light at the end of the tunnel on vaccine deliveries to Africa but it must not be snuffed out again,” Moeti said.
In the Americas, the Centers for Disease Control and Prevention (CDC) said on Wednesday that 66.6 per cent of U.S. counties had transmission rates of COVID-19 high enough to warrant indoor masking and should immediately resume the policy.
COVID-19 continues to inflict a devastating toll on the Americas, with Argentina, Colombia, Cuba, Ecuador and Paraguay among the countries with the world’s highest weekly death rates, the Pan American Health Organization said.
In the Middle East, Iran on Wednesday reported 33,817 new cases of COVID-19 and 303 additional deaths. The country, which has been hit hard by COVID-19, is experiencing yet another surge in cases.
In Europe, Spain’s prime minister said existing measures to protect the most vulnerable from the pandemic’s economic fallout will be prolonged until the end of October.
Spain, one of the countries that was hardest hit at the beginning of the health emergency, has extended subsidies for the unemployed and furloughs for companies that have gone out of business to try to cushion an economic drop of 11 per cent of its gross domestic product in 2020.
-From The Associated Press, Reuters and CBC News, last updated at 11:15 a.m. ET
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