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UK altnet FullFibre has withdrawn from two government-backed Project Gigabit contracts, impacting planned broadband rollout in some of England’s hardest-to-reach areas
In two statements released this week, Building Digital UK (BDUK) confirmed that it had “mutually agreed” with FullFibre to end a pair of multi-million pound Project Gigabit contracts covering.
The first deal aimed to cover 7,900 rural premises across West Herefordshire and the Forest of Dean, and was worth £23.4 million; the second, covering 4,400 rural premises in the Peak District, was worth £10.7 million.Project Gigabit is the UK government’s £5 billion programme to subsidise gigabit-capable broadband in areas that are categorised as unviable for commercial deployment. FullFibre was among several altnets awarded regional contracts through the scheme.
“BDUK is now moving swiftly to put in place alternative plans with other suppliers to connect premises that were due to be covered by this contract,” the agency said.
BDUK added that it remains committed to ensuring the affected premises are connected on schedule, with new suppliers expected to be appointed soon.
The reasons for FullFibre’s withdrawal have not been disclosed, but it is likely linked to a combination of commercial pressures and delivery complexity.
FullFibre was due to connect the first of its Project Gigabit premises by the end of 2024, but it is unclear if any homes have been built out.
Connecting remote rural properties is often much more expensive than urban builds, and altnets across the UK are increasingly cautious, as investor funding tightens and rollout costs rise.
In fact, FullFibre is not the first altnet forced to abandon its Project Gigabit ambitions, with both Voneus and Freedom Fibre having cancelled similar contracts in the past six months.
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