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This will be the first time that Wales will benefit from the project
The UK government announced up to £800 million of funding to Openreach, to bring gigabit-capable broadband to 312,000 premises across the UK via Building Digital UK (BDUK). The initiative is part of ongoing efforts to improve digital infrastructure in rural areas.
The agreement, worth up to £800 million, was finalised in June 2024 following an open procurement process. The focus of this partnership is on rural regions that have not been included in existing commercial broadband rollouts due to limited interest or capacity from other providers.
Project Gigabit is a £5 billion UK government initiative aimed at expanding gigabit-capable broadband, particularly in rural and remote areas. The project focuses on closing the digital divide by bringing high-speed internet to regions that are unlikely to be served by commercial providers.
With significant government funding, the project partners with broadband providers, like Openreach, to extend infrastructure to these “hard-to-reach” areas. By improving digital connectivity, Project Gigabit supports economic growth, future-proofs the UK’s digital infrastructure, and ensures widespread access to fast internet. The rollout is phased, targeting the most underserved areas first.
The framework will support multiple call-off contracts, each targeting clusters of premises in different parts of the UK. The first two contracts have been awarded:
Call-Off 1: Covering 54,300 premises in areas including Lancashire, North Wiltshire and South Gloucestershire, West and Mid Surrey, Staffordshire, West Berkshire, and Hertfordshire, with a contract value of £149.7 million.
Call-Off 2: Addressing 42,200 premises in West and North Devon, as well as North West, Mid, and South East Wales, with a contract value of £139.1 million.
Further procurement processes are underway to expand coverage under this agreement.
“At the moment we have too many people, especially in the more remote areas, of Wales who can’t properly access the online world, and I’m pleased that thanks to this substantial investment from the UK Government work, on fixing that is starting now,” said Jo Stevens, Secretary of State for Wales in the annoucement.
BDUK will work with local councils and Openreach to begin the necessary infrastructure work, such as trench digging and fibre installation. The first premises are expected to have access to gigabit-capable broadband by early 2025. Once the network is established, residents and businesses will be able to connect to the improved service through their broadband providers.
Join the conversation around the UK’s broadband infrastructure by attending Connected Britain, 11-12 September in London. Get discounted tickets here!
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