Valoo – Advancing digital information society through fibre-optic cabling
Valoo’s vision is to transform Finland into a world-class information society by investing over half a billion euros over the next few years in high-speed fibre-optic cabling that is a crucial element of Finland’s digital infrastructure.
Why?
Finland has lagged behind other Nordic countries in constructing fibre-optic networks. This has slowed down the digitisation of Finnish society – for example, by hindering the adoption of hybrid working. High-speed, dedicated data connections form the basic infrastructure of a modern information society and the foundation for the country’s competitiveness in the rapidly digitising global economy.
Valoo’s mission is to bring fibre-optic connectivity to each and every Finnish home that wants one, and so build the cornerstone of a digital information society – fast and reliable fibre-optic networking.
What and how?
Valoo has developed a data-driven operational approach using a smart algorithm to analyse the needs of different areas for a fibre-optic network and its construction. The validity of the analysis is then tested with test marketing. If and when sufficient interest in a certain area is identified, construction of a fibre-optic network will start.
After data-driven analysis and test marketing, Valoo builds a fibre-optic network quickly, agilely and efficiently while also addressing all details, such as the quality of work and subcontracting chains. Applying this approach, Valoo has grown into one of Finland’s largest independent fibre-optic players.
Growth and internationalisation
Valoo’s vision is to build fibre-optic infrastructure in Finland and to bring fibre-optic connectivity to more than 300,000 households by 2027. This will create jobs for over significant number of Finnish contractors and fibre-optic network builders across Finland. In other words, the company is building fibre-optic infrastructure for Finns with Finnish work.
For the time being, Valoo is focusing entirely on Finland, and has no plans to scale the operating model internationally. Neverthless, there may be international demand for an efficient, data-based approach in various European countries in the future.
The importance of private equity
Private equity investments are of paramount importance for the construction of fibre-optic infrastructure in Finland, as a fibre-optic network forms part of the basic infrastructure of a modern information society. Together with its main owner, Dutch infrastructure investment company DIF Capital Partners, Valoo has raised a total of more than EUR 400 million in private equity and loan financing to accelerate the construction of fibre-optic infrastructure in Finland.
Tesi participated in Valo’s investment round as a minority investor with the aim of promoting both the construction of fibre-optic infrastructure, since it is essential for the functioning of Finnish society, and sustainable urban development. Valoo’s strategy will provide optimal telecoms connectivity to an increasing number of locations in Finland, thus enhancing the country’s competitiveness.
General information
Founded in 2019, Valoo Ltd is a Finnish fibre-optic company and internet operator employing nearly one hundred experts in the field. Valoo’s focus is on building a fibre-optic network in those areas in Finland completely lacking a high-speed data network. By the end of 2024, Valoo will have installed some five million metres of fibre-optic cabling across Finland.
Valo is owned by DIF Capital Partners, a Dutch infrastructure investment company founded in 2005 that typically invests in digitisation, energy transition and sustainable transport.
Advancing digital information society through fibre-optic cabling
“Tesi’s role as an investor is important to us. It’s great that financing for building domestically important infrastructure can also be found in Finland.”
- Vesa Kemppainen, CEO, Valoo