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The move should give CityFibre a huge competitive boost as they look to take on market leader Openreach
Sky and CityFibre have announced a long-term partnership allowing Sky to offer full fibre services over CityFibre’s network.
As the UK’s largest altnet, CityFibre’s network currently reaches 3.8 million premises, with plans to expand to at least 8 million in the coming years. CityFibre is also a key player in the Government’s Project Gigabit Programme, with contracts in place obliging them to cover a further 1.3 million rural homes with their fibre-to-the-premise (FTTP) network.
From 2025, Sky will be able to use this network to offer a new range of multi-gigabit speed capable packages to customers.
“Sky’s new partnership with CityFibre will mean we can provide fast, reliable and great value broadband to more homes across the UK. This will mean we are able to reach even more people with full fibre, which is essential for the modern home,” said Amber Pine, Managing Director of Connectivity at Sky in a press release.
“This partnership with Sky is a huge vote of confidence in our business and has cemented CityFibre’s position as the UK’s third digital infrastructure platform. With demand for digital connectivity continuing to grow, CityFibre’s network can provide the quality and reliability that people need and the infrastructure competition the UK deserves,” echoed Greg Mesch, CityFibre CEO.
Sky currently serves its existing 5.7 million broadband customers on BT’s Openreach network, as such this new deal is likely to be a severe blow to the incumbent. According to a Telegraph article released today, roughly £1bn has been wiped off BT’s market value as a result.
Last month, Openreach lost a record number of customers, nearly 200,000 between April and June, amid growing market competition from altnets such as CityFibre.
This morning’s partnership announcement sent BT shares down 5%.
Join Greg Mesch at this year’s Connected Britain, 11-12 September in London. Get tickets here!
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