{"id":27113,"date":"2021-05-24T08:17:57","date_gmt":"2021-05-24T07:17:57","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=27113"},"modified":"2021-05-24T08:17:57","modified_gmt":"2021-05-24T07:17:57","slug":"cityfibre-ponders-full-fibre-rollout-to-10-million-uk-premises","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/05\/cityfibre-ponders-full-fibre-rollout-to-10-million-uk-premises.html","title":{"rendered":"CityFibre Ponders Full Fibre Rollout to 10 Million UK Premises"},"content":{"rendered":"

Broadband builder CityFibre<\/a> is reportedly said to be considering an expansion of their existing rollout plan, which currently aims to cover 8 million UK premises with their gigabit-capable Fibre-to-the-Premises (FTTP<\/a>) ISP network. But this could be expanded to 10 million, provided they can secure the necessary fund and contracts.<\/p>\n

At present the operator’s \u00a34bn<\/strong> commercial deployment aims to cover 1 million UK premises with their alternative FTTP<\/a> network by the end of 2021 (over 650,000 have already been reached) and then 8 million premises across 285 cities, towns and villages – c.30% of the UK (here<\/a>). The latter target is expected to be “substantially completed<\/em>” by the end of 2025.<\/p>\n

Back in early March we also reported that CityFibre<\/a> were in the process of trying to sell a significant minority stake (potentially worth as much as \u00a31bn) to a third potential backer alongside their existing investors (here<\/a>) – the West Street Infrastructure Fund<\/strong> (Goldman Sachs) and Antin Infrastructure Fund<\/strong>. Each hold a 35% stake in the business.<\/p>\n

According to The Mail on Sunday<\/a> and CityFibre<\/a>’s CEO, Greg Mesch<\/strong>, the operator is now in talks with 20 pension and infrastructure funds from the UK, North America, Europe and Australia, which could result in the sale of a 30% stake. By going public with this detail the operator may be attempting to encourage some competition between the interested parties.<\/p>\n

The additional funding, if secured, would help to fuel both their existing deployment plan and enable them to compete for rural deployment contracts under the Government’s \u00a35bn Project Gigabit<\/strong><\/a> programme, which is an area that they’ve already trialled (here<\/a>). Assuming they were to succeed in securing some of those contracts’ then their rollout target could potentially be lifted to 10 million premises<\/strong>.<\/p>\n

Greg Mesch said:<\/strong><\/p>\n

“We’re going faster than we ever have … We were able to build quicker because the pandemic had everybody off the roads \u2013 or at least out of the way. And unlike BT<\/a> and unlike Virgin, we didn’t stop. We remobilised, we recommitted, we went stronger.”<\/p><\/blockquote>\n

In fairness, the comment about BT<\/a> and Virgin Media<\/a> having stopped their build is not entirely correct. While Virgin Media<\/a>’s deployment did slow a bit during the lockdowns, it clearly did not grind to a complete halt for those periods (here<\/a>). Likewise, Openreach<\/a> still achieved their build target of 4.5 million premises passed by the end of March 2021, which was set before the pandemic began.<\/p>\n

We should point out that almost all contractors did initially suffer some disruption in March – April 2021 last year as the first lockdown, when combined with uncertainty over the rules, put pressure on the complex supply chains involved. But solutions were soon found, which enabled the builds to ramp up again and, as Greg suggests above, to find some benefit (less disruption on the roads etc.).<\/p>\n

Moving on. One other thing to keep in mind is that CityFibre won’t be the only bidder on contracts for Project Gigabit. Virgin Media<\/a> and merger partner O2<\/a> have a desire to grow their network to another 7 million premises via FTTP<\/a>, while Openreach<\/a> (BT<\/a>) will of course share a similar interest. Not to mention the mass of rural focused alternative networks (altnet) ISPs that now exist (Summary of Full Fibre Build Progress<\/strong><\/a>).<\/p>\n

Suffice to say that there should be much more competition for the Government’s programme than we’ve seen in the past, but it’s too early to say who will scoop up the most. But even without that, CityFibre are currently still on course to build themselves into becoming the UK’s third major network operator.<\/p>\n

Finally, we shouldn’t forget that the BT Group (Openreach<\/a>) are also exploring the possibility of establishing a “joint venture with external parties<\/em>” to help them fund and deploy FTTP broadband to another 5 million premises, which forms part of their target to reach 25 million by December 2026 (here<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"

Broadband builder CityFibre is reportedly said to be considering an expansion of their existing rollout plan, which currently aims to cover 8 million UK premises with their gigabit-capable Fibre-to-the-Premises (FTTP) ISP network. But this could be expanded to 10 million, provided they can secure the necessary fund and contracts.<\/p>\n","protected":false},"author":1,"featured_media":27114,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,418,56],"class_list":["post-27113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-cityfibre","tag-fttp"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nCityFibre Ponders Full Fibre Rollout to 10 Million UK Premises - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Broadband builder CityFibre is reportedly said to be considering an expansion of their existing rollout plan, which currently aims to cover 8 million UK\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2021\/05\/cityfibre-ponders-full-fibre-rollout-to-10-million-uk-premises.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CityFibre Ponders Full Fibre Rollout to 10 Million UK Premises - 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