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Infracapital-backed network operator Fibrus has today confirmed what we first reported last week (here), which is that their £108m publicly funded Project Gigabit broadband rollout contract in Cumbria (Lot 28) has been “extended” to cover an additional 21,000 premises in hard-to-reach areas. But it’s a bit more complex than that.
Just to recap. The Lot 28 build was the first large-scale Regional Supplier contract to be awarded under the wider Project Gigabit programme in 2022. Since then, it’s been making progress, with premises already connected to the new “full fibre” (FTTP) network in villages including Workington, Aspatria, Kendal and Penrith.
The original announcement stated that this contract aimed to cover “around 60,000 premises in the county” and at a cost of “more than £100 million of government investment“. However, some readers may thus be confused by today’s announcement of an extension, which states that the original contract was intended to “initially [cover] 32,000 homes and businesses” and today’s extension thus pushes the new total to around 53,500 premises.
The above situation arises because the original announcement included further homes and businesses that could potentially be brought into the rollout, called deferred scope premises (some other contracts also have this), which is perhaps something that Fibrus and BDUK (Gov/DSIT) could have been clearer about in 2022.
A spokesperson for Fibrus clarified to ISPreview: “The extension includes 21,000 additional homes, and is broken down by 11,000 completely new premises which have been added to the contract, and 10,000 which were within the deferred scope. These new premises were not in the scope of the original contract and have now been introduced following changes in the build programs of other operators” (i.e. commercial build plans by rivals may expand or even shrink their coverage plans – for various reasons, which can impact the Project Gigabit programme).
The new announcement also fails to mention that, according to the government’s contract modification notice, the awarded contract value has increased by £50.7m to £149.75m from the initial stage committed value. But this shouldn’t distract from the fact that this latest agreement will bring gigabit broadband to rural communities like Leece, Threlkeld, Abbeytown, Slack Head (fantastic name for a hamlet) and beyond.
Dominic Kearns, CEO at Fibrus, said:
“I am proud of the transformational impact we have had on digital infrastructure in NI and Cumbria. We have been delivering Full Fibre broadband to some of the most challenging geographies and rural areas, ensuring no one gets left behind by the digital divide.
Our internal build team and our partners have demonstrated market leading expertise in rural delivery through our Stratum project and now the Project Gigabit Cumbria build.
Lightning fast, reliable, Full Fibre broadband at affordable prices is what our customers need, and we’re pleased to be the number one provider in our connectable footprint, having connected our 100,000th customer in November last year.
Being awarded this contract extension is a testament to the moves we have made so far, and we’re only just getting started.”
Telecoms Minister, Sir Chris Bryant, said:
“Better broadband will not only enhance the quality of life for tens of thousands of homes and businesses across rural Cumbria, but it will also help us put an end to disparities between urban and rural areas.
Only last month, we launched our Digital Inclusion Action Plan, setting out our next steps to shrink the digital gap. This announcement is a fantastic example of how a Government-backed contract will help ensure people in rural areas are not left behind and have the tools they need to thrive in the digital age.”
Once this state aid fuelled contract is delivered alongside other commercial plans and deployments, in a few short years’ time (including by different network operators), it means that 99% of homes and businesses across Cumbria should have access to “next generation broadband” – a huge achievement for such a rural county in England.
This is in addition to Fibrus’ separate delivery of Project Stratum in Northern Ireland, which is currently around 98% complete and scheduled to finish in June 2025 “on time and within budget“. Fibrus added that they’re also continuing to see “exceptional levels of customer take-up in both its subsidised and commercial footprints“. Penetration at the end of March 2025 will exceed 27% for Fibrus as a whole and exceed 34% in its subsidised footprint, with earlier cohorts already above 50%.
Customers of the service typically pay from £24.99 per month for an unlimited 159Mbps (34Mbps upload) package with an included router and free installation, which rises to £44.99 per month for their top 982Mbps (310Mbps upload) tier on a 24-month contract term. The service discounts may vary between different parts of their build.
Finally, Fibrus currently expects to achieve “EBITDA profitability” for the coming financial year, with annualised recurring revenues in February 2025 already exceeding £32m and growing steadily month on month.