This will help government to fulfil its gigabit broadband ambitions and support the provision of Nexfibre’s plan to reach 5 million premises by 2026.
Nexfibre has significant capability to invest due to its strategic investors InfraVia Capital Partners, Liberty Global and Telefónica, with £4.5bn in agreed financing to achieve its goals. It also has an exclusive partnership with Virgin Media O2, providing a material baseline of penetration to build upon, as it looks to onboard additional ISPs to wholesale the network.
As Nexfibre is a wholesale-only provider, this enables it to focus entirely on building and maintaining a high-quality, technologically-advanced, full-fibre infrastructure platform for ISPs and businesses.
With the network expansion activity ramping up significantly, Rajiv Datta, CEO of Nexfibre "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.
The investment 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.
This is all part of Nexfibre’s focus on creating a full fibre infrastructure platform. It will also address the historical lack of investment in this area.
Datta said, "The £1 billion 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 £1 billion 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."