Vodafone and CityFibre have an existing partnership that aims to deliver 5 million FTTH connections by the mid-2020s but a new deal could see the pair increase this target
CityFibre and Vodafone could be on the verge of announcing an enormous investment package to boost the UK’s full fibre network infrastructure, according to reports in the press.
The Financial Times reported that the pair are in the process of renegotiating a deal that could see CityFibre’s owners, Goldman Sachs, invest a further £1.5 billion in CityFibre’s network expansion.
CityFibre was reported to be interested in purchasing TalkTalk’s Fibre Nation unit, which planned to deliver fibre to the home (FTTH) connectivity to 3 million UK homes and businesses.
These plans were put on hold in the run up to the UK’s general election, as Labour leader Jeremy Corbyn threatened to nationalise the UK’s incumbent fibre network operator, Openreach, if the Labour party was elected to government – a plan that many believe would have plunged the UK’s fibre broadband sector into complete chaos.
Following Labour’s heavy defeat in the subsequent election, talks between Vodafone and CityFibre over further investment are believed to have resumed.
The discussions are believed to centre around how an exclusivity clause held by Vodafone would be affected by any additional expansion of CityFibre’s network or the potential acquisition of TalkTalk’s Fibre Nation.
The talks are expected to be concluded by the end of this week, according to the article in the Financial Times.
Neither Vodafone nor CityFibre have commented at this time.
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