Economy

Vodafone and CityFibre to batter BT with gigabit FTTP network

Vodafone and CityFibre to batter BT with gigabit FTTP network

The rollout of gigabit-capable full fibre broadband is due to begin in early 2018, with the first phase seeing the technology being deployed to one million homes and businesses over three years.

Vodafone says it is aiming to bring ultrafast networks, capable of 1GBps download speeds, to up to five million United Kingdom homes and businesses by 2025.

Vodafone and CityFibre are to build a fibre to the premise (FTTP) broadband network that will serve as many as five million properties in a move that could shake up the United Kingdom telecoms market.

The company said the agreement with CityFibre provides the company with access to "a superior product at a lower cost" and with better service conditions than the regulated wholesale terms offered by BT.

"With this commitment from Vodafone, we have a partner with whom we can transform the digital capabilities of millions of homes and businesses and establish an unassailable wholesale infrastructure position across 20 per cent of the United Kingdom broadband market".

The company owns core fibre-optic infrastructure in cities including Sheffield, Edinburgh and Bristol and has been seeking telecoms retail partners to secure funding to build links into homes.

Vodafone UK Chief Executive Nick Jeffery said: “Vodafone is already playing the leading role in building the Gigabit Society across Europe by providing customers with high-speed, high-quality broadband.

The network will triple maximum broadband speeds available now in the UK.

More news: Plans Released For Veterans Day

Openreach is already pursuing a plan to connect fibre to 10 million United Kingdom homes and businesses by the mid-2020s.

"We look forward to working with CityFibre to build the gigabit fibre network that the United Kingdom needs and deserves".

In the same week that BT admitted that it is planning yet more price hikes, Vodafone and CityFibre have announced plans to build their own fibre-to-the-premises network to take on BT. "We have also been consulting our customers on an ambition to reach 10 million homes and businesses with FTTP by the mid-2020s, and we'll give an update on that process before the end of this year".

Vodafone has made a minimum volume-based commitment for 10 years which increases over the period to 20% of the initial one million premises. The agreement only addresses the consumer side with Vodafone and they have some exclusivity during the build cycle.

With a core metro rollout already operative in 42 towns and cities, CityFibre's ambition is to densify some of those rollouts within five to ten cities to reach a minimum of one million and a maximum of 5 million United Kingdom homes within four years.

Vodafone is expanding in the United Kingdom fixed market with an agreement to market FTTP services with the wholesale operator CityFibre.

This news content was configured by WebWire editorial staff. Linking is permitted.