BROADBAND BREAKFAST INSIGHT: Major news from the United Kingdom with the deal announced between Vodafone and CityFibre. This deal shows how the rest of the world is adapting to the model that the United States has not yet, but eventually will: Separation of infrastructure from services.
Vodafone throws down gauntlet to BT with new fibre network UK group’s tie-up with CityFibre to bring broadband extension to as many as 5m homes by 2025, from Financial Times:
Vodafone has moved to shake up the broadband market in the UK after it signed an agreement with fibre specialist CityFibre to fund the construction of a full fibre network potentially reaching 5m homes by 2025.
The move throws down the gauntlet to BT’s Openreach division and Virgin Media by creating a third substantial network within the UK that will lay fibre direct to doors of consumers.
Ofcom, the regulator, and politicians have put pressure on Openreach to increase its investment in full-fibre networks as Britain has fallen behind other countries in the race for ultra-fast broadband speeds.
Vodafone has teamed up with CityFibre to build full fibre to 1m homes in 12 cities by 2021 with an option to extend the plan to a further 4m homes by 2025. The initial build is expected to cost up to £500m over 20 years depending on demand and will target second-tier cities across the UK that are under-served by the larger companies.