ISP Gigaclear Brings 1Gbps FTTP Broadband to 10000 Rural UK Premises

Fibre optic ISP Gigaclear, which specialises in deploying 1000Mbps capable Fibre-to-the-Premises (FTTP) broadband services to rural communities across the United Kingdom, has officially expanded their network to cover 10,000 premises and they intend to hit 20,000 by the end of 2015.

It’s worth pointing out that the figure of 10,000 was originally touted as a goal that could be achieved by the end of 2014, although it’s possible they may have meant the 2014/15 financial year and this could also be true for the 20k target. However connecting rural areas is very time consuming and even the big boys like BT, which are deploying cheaper FTTC that should be faster to install, can suffer big delays.

So far most of the 10,000 that have been put within reach of the service come from Gigaclear’s existing private projects and the same is largely set to be true for the next 10,000 (total of 20,000 with an estimated 38% uptake), which they hope to have by the end of this year. This reflects networks in 36 communities (villages etc.) and across 5 counties, mostly in England.

Matthew Hare, CEO of Gigaclear, said:

“We have made fantastic progress this year already delivering ultrafast broadband to more than twice the number of properties than we did last year. The additional networks currently in construction and our significant pipeline of new networks clearly demonstrates the huge level of demand in rural areas for the unique service Gigaclear provides. The FTTP technology we deploy is more scalable than any other broadband infrastructure, future proofing these areas of the UK.”

Gigaclear also privately confirmed to ISPreview.co.uk that by the end of 2016 their latest, albeit state aid supported, deployments with the Broadband Delivery UK programme (e.g. Gloucestershire – here, Essex – here and Berkshire – here etc.) will be almost complete and that should add an additional 20,000 homes to the total (40,000).

The ISP also said they have future commercial plans to reach another 30-40K premises (around 80,000 total), although it’s unclear how much additional investment might be required in order to achieve that goal. Since floating on the AIM market of the London Stock Exchange Gigaclear informs us that they’ve so far managed to attract £48.6 million in equity investment.

At this point it’s worth reminding readers of Gigaclear’s “medium-term” target from the 2014 AIM float: “The Company’s target, assuming capital of £180 million (including the proceeds of the Placing) is deployed over the medium-term, is to make ultrafast fibre broadband available to 200,000 rural properties” (Gigaclear said this equated to 13% of its addressable market).

Presently the ISP is conducting a classic growth spurt, with the focus being on spending big to roll-out to as many rural areas as possible within the available funding. Meanwhile turnover is running a fair bit behind that spend, but this is the same approach as many businesses take when trying to address a known demand.