The movements under this heading in the balance sheet in 2017 and key information affecting the heading are as follows:
The main investments in property, plant and equipment correspond to the new FTTH access network.
The Company also made major investments in increasing the capacity of the mobile network, further changes to the IMS–XVC networks (telephony and multimedia services over IP) and SMS and voicemail boxes, and in improving and extending the IPTV platform.
The assets contributed to the Company under the Decree, dated 17 June 2015, on the allocation and contribution of assets, rights and obligations to the government-owned company Andorra Telecom, S.A.U., effective for accounting purposes from 1 January 2015, include the following national assets (Annexe II of the Decree), which were valued by an independent expert on 8 June 2015.
On 31 December 2017 the certified cost to date of demolishing the building at no. 112 Avinguda Meritxell was capitalised and added to the cost of the land, in accordance with the applicable accounting standards.
The demolition works are still continuing and are expected to be completed in late February 2018.
The breakdown of equipment and technical facilities at 31 December 2017 is as follows:
The Company’s bylaws state that its corporate purpose includes the management and operation of telecommunications services and the management of the national radio and television networks. As the Company is unilaterally responsible for the broadcast of radio and television signals, it receives no remuneration for the management of said networks. The Law on public radio transmissions and the creation of the government-owned company RTVA, S.A. granted the Government powers to allocate the assets needed for the operation of radio and television services. This allocation did not make any reference to the assets held by the Company.
Installed equipment recorded under Plant and equipment includes items owned by the Company but in the possession of third parties who are customers of the Company.
It is the Company’s policy to take out insurance against any risks that may affect its property, plant and equipment. At the end of the 2017 reporting period all such risks were fully covered.