CityFibre gains an additional 200,000 passed premises following its acquisition of Lit Fibre, with the ambition to build a further 100,000 using the Lit Fibre resource. This acquisition, structured on a share-based arrangement, will result in Newlight Partners (the current owners) holding a minority stake (2%) in CityFibre. This will be the first of many “straegic acquisitions” from the network Giants over the next few months.
The “altnet” Lit Fibre, is what we would call a hybrid network. They lay their own full-fiber network and, at the same time, sell direct to consumers under the same brand. Many other networks do the same, some choose to split the brands out, one for network build and the other for the ISP element. To date, Lit Fibre has passed over 200,000 premises, with 9,000 of those being connected customers.
Now, we know CityFibre is only a network operator, so the question is, where do those 9000 customers now go? Of course, they will be kept within the CF marketplace and no doubt be migrated to one of their preferred suppliers, but it will be interesting to see how that process plays out.
CityFibre’s plan includes the continuation of Lit Fibre’s ongoing deployment efforts and the implementation of the majority of its planned network expansions. With Lit Fibre expected to add up to 100,000 premises to its coverage by early 2025, CityFibre is poised for substantial growth. Notably, Lit Fibre’s network infrastructure is constructed pretty much with only using poles (not always the best option).
Greg Mesch, the CEO of CityFibre, emphasized, “Our ongoing self-build rollout program has already connected more than 3.5 million premises through our partnerships. We are now ramping up our efforts through strategic acquisitions such as Lit Fibre.” Mesch further highlighted the necessity for a robust third infrastructure platform in the UK market to foster competition and ensure continued benefits for consumers and the nation.
We’ve always been team City FIbre, so its great to see them start this trail of aqustions. We’re more excited to see how the direct customer migrations play out.
More to come soon!
