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Bournemouth City UK Still Does Not Know When CityFibre FTTH Work to Resume

Posted: 04th May, 2011 By: MarkJ
fibre optic cable i3groupfibrecity bournemouth uk broadband logoThe Bournemouth Borough Council has told ISPreview.co.uk that it still doesn't know when CityFibre Holdings (Fibrecity) will be returning to the South Coast city in order to finish their controversial super-fast 100Mbps Fibre-to-the-Home ( FTTH ) broadband ISP network.

The i3 Group sold off its UK subsidiaries (shares), which included Fibrecity, H2O Networks, Opencity Media and Wireless Network Systems, to a consortium led by Greg Mesch, i3's own former President and COO, in January 2011 (here). This followed a Series Fraud Office (SFO) investigation of the original projects financial backers (here). Meanwhile the work in Bournemouth has been left unfinished and a number of services were recently suspended (here).

Bournemouth Councillor, Peter Charon, said in January 2011:

"We have been concerned over the project since the work ceased in October 2010, leaving a number of roads and pavements needing remedial work. As Fibrecity is a statutory undertaker we are unable to prevent the work, however we will be insisting all the works are carried out to a high standard and, where this is not the case, additional work carried out.

Whilst a delay in the works resulting in the restructure of the company is understandable it is unacceptable that residents and businesses are kept in the dark on the progress of the project. Fibrecity also need to inform those residents who have signed up to receive the cables where they stand. The growing uncertainty could potentially undermine the project. We are determined to get this situation resolved as quickly as possible in the best interests of the people of Bournemouth."

However, two weeks ago CityFibre Holdings emerged from their restructuring exercise and promptly pledged to "start making good the works left unfinished by our predecessors in Bournemouth" (here). The new group promised to repair the network, add ISPs and begin activating customers.

The press release was designed to show that, as they told us only last week, "there is a future for the assets that have already been built". Sadly it lacked any kind of timetable and CityFibre's actual business strategy has yet to be revealed, which will apparently surface "as soon as it can".

Meanwhile Bournemouth is still waiting and many customers have since moved over to Virgin Media after their services came to an abrupt end. It's unclear how CityFibre can reverse this situation.

Mike Holmes, Bournemouth Council's Service Director for Planning and Transport, told ISPreview.co.uk:

"We are currently awaiting confirmation from CityFibre Holdings about when they will be returning to Bournemouth to continue their work."

CityFibre recently claimed to have connected 10,000 homes in Bournemouth to its fibre optic broadband network, with a further 12,500 passed. Ironically that statement came shortly after their ISPs (e.g. Velocity1) had suspended the service.

Still, the group does claim to have a "highly experienced management team" and over 120 long-term contracts with local authorities such as police forces, healthcare organisations, councils and universities. It also inherits eight separate metropolitan fibre rings covering a total population of 2,084,000 people, over 57,000 businesses and more than 300 data centres.

It would be a wonderful achievement if CityFibre Holdings can get back on track but the task they face, while not insurmountable, is by no means an easy one. We hope to have more information soon.
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