TalkTalk sells off its fibre networks business to infrastructure platform Cityfibre for £200m
- Deal for Fibrenation was delayed due to the General Election
- TalkTalk feared the Labour party would nationalise parts of BT if they won GE
- Fibrenation was founded in 2018, after a joint venture between TalkTalk, Sky
TalkTalk has sold its fibre networks roll-out business to Cityfibre for £200million.
The deal for Fibrenation was supposed to be completed last year, but was delayed following Labour’s announcement that it planned to nationalise parts of BT if it won the general election.
But it has now been finalised and makes Cityfibre the UK’s third-largest digital infrastructure platform behind Virgin and BT.
Fibrenation was founded in 2018, four years after a joint venture between TalkTalk, Sky
Greg Mesch, chief executive of Goldman Sachs-backed Cityfibre, said: ‘The UK is a service-based economy, and this runs best on full fibre.’
He continued: ‘Ensuring national coverage is critical and this can only be achieved by driving infrastructure competition at scale. This deal demonstrates the appetite from industry to see it established.’
TalkTalk chief executive Tristia Harrison said: ‘This agreement is good news for TalkTalk and good news for Britain’s fibre rollout.
‘Our investment over the last five years and the excellent work delivered by the Fibrenation team, combined with Cityfibre’s well-established platform, will support wide geographical reach of full fibre and further drive competition and customer take-up in the market.’
The deal is still awaiting approval from TalkTalk’s shareholders.
Fibrenation was founded in 2018, four years after a joint venture between TalkTalk, Sky and Cityfibre was launched to roll out full-fibre broadband across York.
The deal also sees Cityfibre announce that it has changed the terms of its partnership with Vodafone to allow other internet providers to access its networks sooner than planned.
The deal comes as survey by comparison site Cable found that Britain is now in 81st place in the world for the value of home broadband packages due to slow internet speeds compared with other countries.
Vodafone aims to bring full-fibre broadband to one million homes and businesses by 2021, with a further four million added by 2025.
The Government’s Culture Secretary Baroness Morgan also welcomed the deal.
She said: ‘This is great news for full-fibre rollout.
‘We want every corner of the country to benefit from world-class, gigabit-speed broadband and this agreement will help to stimulate competition in the market so that the UK has the infrastructure in place to support businesses and our economy.’