Amino has announced a contract win for a hardware and software deployment with Deutsche Glasfaser (“DG”), the largest independent fibre-to-the-home (“FTTH”) network operator in Germany. The release is light on detail as to the contract size and potential value to Amino, and we make no revisions to forecasts. However, in our view, the deal further validates the strength of the Amino devices and software offerings, and enhances market positioning in the sizeable German IPTV market.
Amino has announced that it will supply Aria 6 devices to DG for deployment in the second-phase rollout of DG’s next generation TV platform. DG commenced deployment of its retail triple-play offering (broadband access, TV and voice telephony) to residential and business customers in 2014, and the service is available on a white-label basis to other wholesale customers. Amino’s ENABLE software is being licensed to DG for deployment across the customer base.
Founded in 2012 and majority-owned by investment firm KKR, DG operates a 375,000km, 100% fibre optic-based network in seven German states. To date over €200m has been invested in the network, which passes around 174k premises (2016) and serves around 74k FTTH subscribers. Although Amino is not currently involved, DG also recently announced a planned €2bn, 14m subscriber fibre deployment with Vodafone Germany.
DG highlighted three key factors that clinched the deal for Amino. These include Amino’s fully-featured IPTV software stack, strong technical support – particular in new feature development and Amino’s best-inclass integration of third-party “Over The Top” (“OTT”) applications (i.e. those delivered over the Internet). These are all primarily softwarerelated competences, in our view further demonstrating Amino’s increasing strength of the ENABLE software platform.
The DG transaction represents the welcome addition of a new operator to the client base, and strengthens Amino’s market position in a sizeable territory for IPTV. With both a hardware and software component, in our view it also validates the strength of both Amino’s devices offering, and the ENABLE TV platform. We look forward to an update on progress with the expected Trading Update in December 2017.