Valokuitunen: Leading the Deployment of Fiber Optic Networks in Finland

Founded in 2020 as a joint venture between the CapMan Infra fund (60%) and Swedish telecommunications operator Telia Company – one of the three major telecommunications provider in Finland – (40%), Valokuitunen (VK) builds, owns and operates the passive layer of fiber-to-the-home (FTTH) networks in Finland – i.e, the last-mile infrastructure connecting homes to the Finnish national backbone network owned by Telia – , with recent expansion into fiber-to-the-building (FTTB) solutions. The company has already significantly invested to build its network, notably through a €400million refinancing round in 2023. Despite Telia’s support Valokuitunen offers an “open access” model, allowing customers to choose their Internet Service Providers.

Market Leadership in a High-Potential Sector

VK holds a leading position in Finland. With over 400,000 households passed and c.100,000 homes connected by the end of 2024, VK benefits from an existing extensive network – relative to the Finnish market size – and now focus on increasing its penetration rate (home connected in % of home passed). Additionally, the company still enjoys significant deployment opportunities, supported by government subsidies in rural areas. Indeed, Finland lags behind other European countries in fiber coverage, creating fertile ground for growth. This expanding market, as Finland catches up, allows VK to keep growing while enjoying a natural monopoly in suburban and rural areas it already covers, thanks to high market penetration and economies of scale that greatly limit opening for new entrants.

Predictable Revenue and Long-Term Strategy

VK’s revenues are naturally secured as it owns the passive layer of the network but further anchored through long-term contracts enabled by a strategic partnership with Telia,. This partnership ensures stable monthly income based on a predetermined price, granting the company strong financial stability. VK also stands out thanks to the strength of its leadership team and the expertise of CapMan, which has enabled the company to achieve outstanding operational and financial performance since its founding.