UK fibre infrastructure provider CityFibre Infrastructure Holdings is aiming to raise a further £200 million in funding via a share sale to finance the growth of its network in the UK.
Among CityFibre’s goals are:
- The expansion of CityFibre’s fibre metro networks from 42 UK towns and cities today to not less than 50 towns and cities by 2020
- The commencement of construction of FTTH facilities, addressing the residential market, in five to ten UK towns and cities during 2018
- In support of the company’s strategy to focus on wholesale fibre services and accelerate the commercialisation of CityFibre’s fibre assets, the acquisition of Entanet International Limited, a provider of wholesale communications services, for a consideration of £29 million in cash.
The funding announcement follows CityFibre’s successful participation in an FTTH trial in York. The company says the trial demonstrated strong demand from Internet Service Providers (ISPs) and consumers for Gigabit speed FTTH services, and showed the propensity for consumers to switch to FTTH connections. CityFibre is now in advanced negotiations with ISPs that will market full-fibre broadband services to consumers, deployed over its networks.
The acquisition of Entanet, will substantially increase the company’s wholesale capabilities and its relationships with service providers, thereby extending CityFibre’s channels to market. By combining CityFibre’s fibre infrastructure with Entanet’s established wholesale products, systems and relationships with channel partners, the company expects to realise synergies of over £3 million per annum within three years.