CityFibre Infrastructure Hldgs PLC Business Parks Initiative (3595Q)

TIDMCITY

RNS Number : 3595Q

CityFibre Infrastructure Hldgs PLC

29 November 2016

 
  For immediate release    29 November 2016 
 

CITYFIBRE INFRASTRUCTURE HOLDINGS PLC

('CityFibre' or the 'Group' or the 'Company')

Business Parks Initiative

Dense full-fibre networks will deliver growth in the UK's digital economy by empowering SMEs in business parks across CityFibre's 40 city footprint

CityFibre (AIM: CITY), a leading designer, builder, owner, and operator of fibre optic infrastructure in UK towns and cities, is pleased to announce that it has begun a roll-out of dense full-fibre networks in business parks across its 40 city UK footprint to reach more than 500 business parks. Over 22,000 SMEs will benefit from low-cost access to world-class, gigabit-speed internet services delivered over the new infrastructure in or near CityFibre's existing networks. The first parks targeted for upgrade are in the Company's Gigabit City projects Coventry, Bristol and Peterborough.

The full-fibre networks will be made available to Internet Service Providers (ISPs) and resellers on a wholesale basis, enabling CityFibre's partners to market a new generation of affordable, ultra-fast internet services. These will provide a major digital advantage to local businesses, dramatically increasing their productivity. An entry level, ultra-fast, symmetrical service will be available at an expected retail price of GBP120 per month.

CityFibre has already proven the demand for full-fibre connectivity in business parks in several of its Gigabit City projects. Pre-registration rates of over 60% have been recorded in many of the business parks surveyed on the current footprint. CityFibre will leverage its learnings of local market engagement, demand aggregation and product pricing to accelerate penetration rates.

The announcement marks a major new phase in the growing competition that CityFibre is providing to BT Openreach across the UK. CityFibre's aim is to expand to 100 cities by 2025, which would equate to fibre access for 60% of the UK's businesses and 40% of the UK's homes outside of London. The roll-outs will also serve as a full-fibre backbone to support the economic development of key development areas such as the Northern Powerhouse and Midlands Engine.

Greg Mesch, Chief Executive of CityFibre, commented:

"After decades of underinvestment, Openreach's antiquated network infrastructure is strangling our nation's businesses. It is up to CityFibre to provide them with a viable and fit for purpose alternative, delivering a new generation of connectivity for our SMEs, the lifeblood of the UK economy.

"Access to full-fibre connectivity is the only long term solution, and this is currently either unavailable or so cost-prohibitive that it has remained out of reach for most. By extending our Fibre to the Premises roll-out to business parks across our national network, we are bringing affordable, world-class connectivity to the doorsteps of thousands of businesses for the first time. This is preparing our cities for an inevitable future upgrade to Fibre to the Home."

Minister of State for Digital and Culture Matt Hancock said:

"In last week's Autumn Statement we committed to investing another GBP1billion in the UK's digital infrastructure and to support the delivery of full-fibre broadband.

"Fibre is the future, so today's announcement by CityFibre is another boost to help achieve our ambitious goals. It will give small businesses across the country access to fast and reliable broadband and encourage other emerging providers to scale up so we remain a world-leading economy."

Notes to editors:

Below are independent statistics proving the need for competitive infrastructure and ultra-fast internet services for SMEs and business parks:

-- 94% of small business owners consider a reliable internet connection critical to the success of their business.(1)

-- Approximately 45,000 small businesses (1% of Britain's 4.5 million small businesses) still have to rely on a dial-up connection.(1)

-- 25% of small firms say they are fairly or very dissatisfied with their broadband provision.(1)

-- 40% of small businesses said improved digital infrastructure in their area would encourage them to invest in new technology.(1)

-- 50% of SMEs (around 130,000) in certain business areas are unable to receive speeds above 10Mbps (2)

-- Estimated that as of August 2015, 46% of premises in SME only postcodes had broadband connections with a maximum speeds of less than 10Mbps, 24% has maximum speeds of less than 5Mbps and 12% had maximum speeds of less than 2Mbps. (2)

   --     18% of SMEs are still unlikely to have access to superfast broadband beyond 2017. (2) 

(1) Federation of Small Businesses report - The Fourth Utility: Delivering universal broadband connectivity for small businesses across the UK

(2) Ofcom's Connected Nations Report

For further information, please contact:

 
  CityFibre Infrastructure Holdings         www.cityfibre.com 
   plc 
  Greg Mesch, Chief Executive Officer       Tel: [phone] 
                                             0774 
  Terry Hart, Chief Financial Officer 
  James Enck, Head of Investor Relations    Tel: [phone] 
                                             6283 
 
  finnCap (Nomad and Joint Broker)          www.finncap.com 
  Stuart Andrews / Christopher Raggett      Tel: [phone] 
   (Corporate Finance)                       0500 
  Simon Johnson (Corporate Broking) 
 
  Liberum (Joint Broker)                    www.liberum.com 
  Steve Pearce / Steven Tredget /           Tel: [phone] 
   Richard Bootle                            2000 
 
  Vigo Communications                       www.vigocomms.com 
  Jeremy Garcia / Fiona Henson              Tel: [phone] 
                                             9700 
 

About CityFibre:

CityFibre is the national builder of Gigabit Cities, as the UK's largest alternative provider of wholesale fibre network infrastructure. It has major metro duct and fibre footprints in 40 cities across the UK and a national long distance network that connects these cities to major data-centres across the UK and to key peering points in London.

The company has an extensive customer base spanning service integrators, enterprise and consumer service providers and mobile operators. Providing a portfolio of active and dark fibre services, CityFibre's networks address 28,000 public sites, 7,800 mobile masts, 280,000 businesses and 4 million homes.

CityFibre is based in London, United Kingdom, and its shares trade on the AIM Market of the London Stock Exchange (AIM: CITY). Further information on the company can be found at www.cityfibre.com

This information is provided by RNS

The company news service from the London Stock Exchange

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November 29, 2016 02:00 ET (07:00 GMT)