CityFibre closes FibreNation acquisition

March 30, 2020
The addition of the new fiber assets has led CityFibre to raise its fiber to the premises (FTTP) deployment plans from 5 million to as many as to 8 million premises.

UK open access fiber broadband network provider CityFibre says it has closed its previously announced acquisition of FibreNation from TalkTalk Group. The addition of the new fiber assets has led CityFibre to raise its fiber to the premises (FTTP) deployment plans from 5 million to as many as to 8 million premises via an investment initiative of up to £4 billion. TalkTalk also becomes a CityFibre customer to reach residential and business subscribers. CityFibre said when it first announced the deal this past January that it would pay £200 million ($261 million) in cash for the company (see "CityFibre to buy FibreNation from TalkTalk, tweaks Vodafone FTTH deployment agreement").

FibreNation’s FTTP infrastructure passes almost 60,000 premises, which TalkTalk had used to deliver gigabit broadband services. The company has ongoing FTTP deployment projects in Harrogate and Dewsbury, with Bolton the next town in line. CityFibre says that FibreNation is “mobilizing” in Knaresborough and Ripon, with a goal to pass up to 3 million homes and businesses in total. CityFibre says it plans to keep the FibreNation brand in play.

TalkTalk, meanwhile, will begin a system integration process to leverage CityFibre’s current and planned FTTP network infrastructure. With the addition of the FibreNation footprint and deployment efforts, CityFibre says its rollout plans will cover more than 100 towns and cities in the UK and create up to 7000 construction jobs outside London.

“In the face of the rapid spread of the Coronavirus and its unprecedented impact on the UK’s society and economy, we believe that the need for world-class digital infrastructure has never been greater,” commented Greg Mesch, chief executive at CityFibre. “Completing our acquisition of FibreNation marks an acceleration in our ability to deploy the critical future-proof digital infrastructure our country needs. By significantly expanding our rollout ambition to up to 8 million premises, CityFibre is helping to answer the call for a full-fiber Britain.”

“Now more than ever, reliable and affordable connectivity should be available to every single home in Britain, and this agreement shows that a full-fiber future can be delivered through competition and investment by many players. CityFibre’s ambitions to take forward our hard work with FibreNation over the last five years, should take us a step closer to that fully connected Britain,” added Tristia Harrison, chief executive of TalkTalk. “The sale of FibreNation to CityFibre, in combination with a competitive wholesale agreement, enables us to continue our strategy to accelerate TalkTalk’s fibre growth for our residential and business customers, thereby delivering a superior customer experience at an affordable price.”

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