BROADBAND BREAKFAST INSIGHT: Major new expansion by wholesale infrastructure provider CityFibre in U.K., giving more credence to the “open access” model that is beginning to be deployed globally. Under such a model, one entity owns the fiber infrastructure, with another selling retail internet access services to customers. Frequently, there is yet another entity that provider network operation services to the infrastructure owners. a second entity operates the gigabit network, and a third entity sells retail internet access to customers. In the U.K., CityFibre is aggressively gaining on the BT spinoff Openreach. ||
‘Gigabit Cities’ builder to double market value in £200m deal: The AIM-listed telecoms group will unveil the share sale before the stock market opens on Wednesday, Sky News learns:
A telecoms infrastructure group positioning itself as a rival to BT’s Openreach division will announce on Wednesday that it is doubling its market value through an ambitious share sale.
Sky News has learnt that CityFibre, which is listed on London’s junior AIM stock market, will say that it is raising up to £200m through a placing of equity with new and existing investors.
The capital-raising will be backed by Woodford Investment Management, the vehicle founded by Neil Woodford, arguably Britain’s best-known fund manager.
Sources said on Tuesday that the share sale would signal an aggressive expansion by CityFibre of its fibre-to-the-home initiative across the UK.