CityFibre Expand Bechtel Deal to Support UK FTTP Broadband Rollout

Fibre optic network builder CityFibre has today expanded their existing “strategic alliance” with Bechtel, which already helps the operator to manage their huge infrastructure deployment projects. The move formalises a 5-year extension to the existing partnership.

The deal is designed to support CityFibre’s £4bn deployment, which aims to cover 1 million UK premises with their gigabit-capable Fibre-to-the-Premises (FTTP) network by the end of 2021 and then 8 million are expected to be “substantially completed” across 285 cities, towns and villages – c.30% of the UK – by the end of 2025 (here). This will potentially also cover 800,000 businesses, 400,000 public sector sites and 250,000 5G access points.

Under the extension, Bechtel will focus its leadership and construction management efforts in CityFibre’s north and southeast regions, areas with the greatest density of parallel builds. It will also continue to provide functional support across all regions, as well as developing resource models to ensure thousands more operatives are trained and available to their build partners, to help construct the network.

By the end of 2022, CityFibre now expects to have more than 150 parallel full city, town and village builds underway (up from more than 60 parallel full town and city builds today – managed by Bechtel).

Greg Mesch, CEO of CityFibre, said:

“It’s a pleasure to be extending our alliance with Bechtel after a hugely successful year as partners. Over the last twelve months, they have worked in lockstep with our teams to deliver an extraordinary acceleration of our rollout. This pace will only increase as we commence new projects and maximise the productivity of each build. We’re delighted that Bechtel, with their unparalleled experience of complex, scaled construction projects, will be working alongside us in the years ahead as we continue to build the UK’s finest Full Fibre infrastructure platform.”

Today’s announcement follows recent news that CityFibre had managed to secure yet another major investment boost of £1.125bn (here), which came from the owner of Ikea (Interogo Holdings) and Mubadala (Abu Dhabi’s sovereign wealth fund). The operator’s other major backers are the West Street Infrastructure Fund (Goldman Sachs) and the Antin Infrastructure Fund.