Gigaclear secures £18m loan to fund network expansion
Gigaclear is in the midst of a large growth phase with some 15,000 premises covered by the company in rural villages and a further 10,000 premises to be passed in the construction phases.
News of £18m (€25m) secured from the European Investment Bank (EIB) means that the expansion plans can continue, and with 40,000 additional premises planned to be passed in 2016 there is a lot of work to be done.
"This level of support is a ringing endorsement of Gigaclear as a business. EIB clearly has faith in our model and vision. It can see our own commitment to invest and how effectively we are already providing next generation infrastructure for the UK’s rural economy and communities. We’re transforming lives and businesses, giving people access to the fastest internet speeds to be found anywhere in the world and technologically future-proofing these rural communities for years to come.
We have estimated that 1.5 million properties in the UK could benefit from our services and we want to reach those people as quickly as possible, but we’re a capital intensive business. So this loan is a landmark moment for us and an important next step in our expansion strategy.Matthew Hare, Chief Executive of Gigaclear
With several BDUK contracts now underway for Gigaclear the take-up rate both initial and overtime will be an important metric and if the contracts contain the same claw back clauses as the BT ones, high initial take-up which is sometimes possible when Gigabit arrives in areas stuck with no broadband or under 1 Mbps currently we might see the BDUK projects re-investing to increase the Gigaclear foot print further. It will also be interesting to see if there is any difference in the take-up rates between the BDUK areas and campaign/demand led roll-outs.