Nexfibre announces £1bn investment in broadband infrastructure in 2024

nexfibre, the next generation, full fibre network provider, has today announced it will invest £1bn in broadband infrastructure this year as part of its plans to drive long-term competition in the fibre access market, on a national scale.

This provides a major boost to the UK’s digital infrastructure, helping the Government fulfil its gigabit broadband ambitions, and will support the delivery of nexfibre’s overall plan to reach 5 million premises by 2026.

nexfibre has significant capability to invest thanks to its world-class, strategic investors in InfraVia Capital Partners, Liberty Global and Telefónica with £4.5bn in agreed financing to achieve its goals. Importantly, it also has an exclusive partnership with Virgin Media O2, the second largest retail ISP in the UK, providing a material baseline of penetration to build upon, as it looks to onboard additional ISPs to wholesale the network.

Unlike others, nexfibre is a wholesale-only provider, which enables it to focus entirely on building and maintaining a high-quality, technologically-advanced, full-fibre infrastructure platform for all ISPs and businesses to meet their needs today and in the future.

With the network expansion activity ramping up significantly, Datta ‘believes that other than the incumbent, nexfibre is set to build more than any fibre network provider in the UK this year’, which would result in it becoming the second-largest competitive network in just its second year of operation.

This £1bn investment in 2024 is part of nexfibre’s organic build plan, which can be accelerated or complemented with strategic acquisitions; given the current dynamics of the financial market, Datta has indicated that the business intends to play an active role in market consolidation, providing a natural home for quality networks which extend its footprint.

This is all part of nexfibre’s focus on creating a full fibre infrastructure platform that will provide the UK with the competitive market needed to drive progress and innovation. It will also address the historical lack of investment in this area, as a direct result of Openreach’s monopolistic position in the market, and failure to deliver the next generation of connectivity.

Rajiv Datta, CEO of nexfibre, said:

“The £1billion we are investing this year will be a major boost to the UK’s digital infrastructure. Backed by our world-class investors, we are bringing much-needed sustainable competition and next generation connectivity to the UK.

Our focus is on addressing the historical lack of investment that has left the UK lagging behind its European counterparts, and providing a platform for progress and innovation to deliver lasting value to the communities we serve, and the wider economy.”

Andrea Salvato, chairman of nexfibre, said:

“Our in-year investment of £1bn represents an important step as we continue to build a world-class network, which will reach more than 5 million homes across the UK by 2026. At nexfibre, we are committed to bringing full fibre connectivity to previously underserved suburban and semi-rural areas, playing our part in helping to close the digital divide and boost local economies.”

Jonny Rae

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