CityFibre is to acquire part of KCOM’s network infrastructure in a deal that it hopes will enable it to better compete with BT Openreach.

The company, which has been building up an FTTH network across the UK, is spending £90 million to acquire KCOM’s network outside of Hull and East Yorkshire.

Specifically, this includes 1,100km of duct and fibre network in 24 UK cities, as well as 1,100km of national long distance network that connects these cities to data centres and internet peering points.

The deal sees CityFibre’s footprint grow to 3,200km, covering 36 towns and cities, and reaching 3.5 million households.

It said it plans to reach 50 metropolitan areas by 2020, equivalent to 20 percent of the UK market.

Although not FTTH-based, KCOM’s network would “serve as a backbone” for a future rollout of FTTH network and services, CityFibre said. 

As part of the deal, KCOM will continue to get access to the assets it is selling post disposal.

The operator, which has provided Hull and East Yorkshire with telecoms services since 1904, said it was selling up to reduce debt.

CityFibre said it would spend a further £90 million to accelerate the commercialisation of its wholesale fibre network.

[Read more: Sky, TalkTalk connect first trial customers to new FTTH network in UK]

Following completion of the deal, slated for mid-January, CityFibre said it would become the largest wholesale infrastructure provider after BT and the first challenger to the national incumbent, nearly 10 years to the day since the formation of Openreach.

UK regulator Ofcom is currently assessing whether Openreach should be structurally separated from BT as part of a wider review of the country’s telecoms market.

Operators, notably Vodafone, have been critical of Openreach’s performance.

CityFibre CEO Greg Mesch said: “This is the most significant event to take place in the UK’s digital infrastructure market in a decade.

“The UK now has a secure independent infrastructure alternative.

“Cities, service providers, mobile operators and investors have boldly embraced a new model of future-proof infrastructure provision and paved the way for its acceleration across the country.

“With our enlarged footprint and strong pipeline of cities demanding better infrastructure, we will continue to grow, offering existing and new partners an ever increasing opportunity to capitalise on a pure fibre future.”

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms