Local Connect i Falköping

Local Connect i Falköping AB (“Local Connect”) is an established Swedish fibre to the premises “FTTP” business providing passive network services to the municipality of Falkoping. Local Connect services approximately 4,300 open network connections and 100 dark fibre connections. Local Connect also owns 51% of a sister business called FBAB. a joint venture with the Falköping municipality that owns the fibre backbone connecting Falköping with other towns in the municipality. Equitix acquired 100% of the assets of Local Connect in Q2, 2022.

Local Connect’s revenues arise from recurring charges for each serviced connection from the Communication Operator (Telia) akin to an Internet Service Provider in the UK such as TalkTalk and also from one-off connection fees for each new property connected. The fibre penetration level in Falköping was approximately 76% in 2019. The Swedish government has a target of 98% FTTP penetration for all households by 2025 leaving some further growth potential for Local Connect to capture. Local Connect also generates revenues from dark fibre connections (c. 25% of revenues) under bilateral agreements with approximately 20 commercial customers.

The existing management team was transferred across on acquisition and is complemented by a number of shared services under a transition services agreement with the vendor for the initial period of ownership. A new CEO has been appointed to lead the existing management of Local Connect.