British telecoms infrastructure provider CityFibre has signed off a £30 million investment that will enable it to expand the reach of its high-speed fibre business to over one million homes and businesses by 2016.
The latest funding, raised through a secondary placing of shares, adds to the £16.5 million the company raised at its IPO four months ago.
The London-based firm said it will use the funding to accelerate the rollout of its 1Gbps fibre broadband services to more than 20 cities in the UK.
CityFibre CEO Greg Mesch said: “We can now put our foot firmly on the pedal in our rollout of Gigabit Cities. All the evidence points to the social and economic advantages enjoyed by cities with a future-proofed digital infrastructure."
CityFibre builds and operates fibre-optic network infrastructure in mid-sized cities and major towns that are well suited for high-speed broadband. Specifically, it provides its gigabit capable infrastructure for service providers, mobile network operators, local authorities and businesses. For example, the company is currently developing 1Gbps networks in York, Peterborough and Coventry. It also recently acquired Coventry’s 140km fibre network from the city council, which increased its national network footprint by nearly 50 percent.
“As a nation we are at a critical moment in our economic evolution, faced with a choice between the technology of the past and the fibre promise of the future," added Mesch. "The internet-enabled economy is responsible for a higher level of GDP contribution in the UK than in any G-20 country, but broadband infrastructure lags behind that of many others that have been faster to invest in pure fibre infrastructure.
“Amongst those early adopters, in almost every case, the key catalyst was the presence in the market of a new source of capital and vision. With today’s funding completion, CityFibre is well positioned to occupy this role in the UK.”
CityFibre has seen a surge in demand for its infrastructure as bandwidth-intensive services like internet TV become more popular and businesses move to internet-based communication and storage platforms.
As part of its process to determine suitable candidates for future Gigabit City projects, CityFibre will be opening an application process for the next 10 cities to be prioritised for rollout.