Kitz Forum
Announcements => News Articles => Topic started by: Bowdon on October 24, 2018, 10:35:08 AM
-
https://www.ispreview.co.uk/index.php/2018/10/cityfibre-get-2-5bn-to-build-ftth-broadband-to-5-million-uk-homes.html (https://www.ispreview.co.uk/index.php/2018/10/cityfibre-get-2-5bn-to-build-ftth-broadband-to-5-million-uk-homes.html)
They’ve done it. Fibre optic network builder Cityfibre has announced that their backers have agreed to establish a £2.5bn fund, which will help the operator extend their 1Gbps capable Fibre-to-the-Home (FTTH/P) broadband ISP network to cover 5 million premises in 37 UK cities and towns by the end of 2024.
At present the operator already has a Dark Fibre style network in around 50 cities and towns, which primarily serve public sector sites and businesses. On top of that they’re also investing £500m to build a new open-access FTTH network, which alongside Vodafone is working to cover a “minimum” of 1 million homes in up to 12 of their existing cities and towns (this Phase One should be “largely complete” by 2021).
After Phase One they had also previously spoken about the “potential to extend” this network up to 5 million homes (representing 20% of the current UK broadband market) by 2025, although that would require significantly more funding.
Since then Cityfibre has been acquired for £537.8m cash by Bidco and will be going private. The Bidco group was backed by Antin Infrastructure Partners and West Street Infrastructure Partners, which is a fund managed by Goldman Sachs.
The big news this morning is that Cityfibre’s new backers have agreed to establish a new £2.5bn investment programme for the operator, which they say will be enough to help them deliver on their 5 million aspiration and we’d agree.
Greg Mesch, CEO of CityFibre, said:
“With a head-start in 37 towns and cities, this full fibre investment plan enables us to further accelerate our rollout, catalysing huge economic growth in regional towns and cities across the country and transforming the UK’s digital future.
Our rollout will soon bring to scale an innovative wholesale network, providing internet service providers and mobile network operators with greater choice and unrivalled technical capabilities, benefitting all sectors of the market.
We now need to work together across Government, Ofcom and industry to create a level-playing field that continues to encourage investment from multiple network operators, so that full fibre can be delivered as quickly and effectively as possible.”
Jeremy Wright, UK Secretary of State for Digital (DCMS), said:
“The Future Telecoms Infrastructure Review set out our plans to maximise full fibre coverage. I’m delighted that CityFibre’s investment in 37 towns and cities across the UK will ensure the vast majority of homes and businesses in those areas can access this technology through new fibre networks.
Significant investment from new network operators is critical to deliver our ambition for nationwide coverage. Through our Industrial Strategy we’re working with businesses and Ofcom to ensure effective network competition that supports investment on this scale.”
-
The game changer?
I'm thinking its a good time to be a fibre engineer! Lots of demand :)
-
Good news by the sounds of it. Perhaps it will encourage Openreach to get a move on and put less priority on g.fast.
-
Cityfibre seem quite busy local to my work area. The large section to the right of the attachment was completed over the past few weeks, This must be their next section they are focusing on.
I drove past a fairly large squad on my way home pulling in bundles of fibre cables.
I'm unsure if they will come near me as I'm just outside the city in Aberdeenshire.
-
The game changer?
Not yet.