Equity deal means Hyperoptic is bringing forward its target dates
Fibre to the building and fibre to the premises roll-outs are gathering pace and the news of more investment in Hyperoptic is allowing the broadband provider to increase its ambitions.
The Mubadala Investment Company has signed a deal with Hyperoptic that raises significant equity and the result is that the old goal of 2 million premises by 2022 can be advanced by a year and the previous ambition for 5 million premises of FTTP by 2025 is being brought forward to 2024. The urban roll-out in the next three years is backed by a commitment to spend some £500 million in delivering the additional premises.
Backing by such a significant sovereign wealth fund, not only provides the firepower to deliver on our plan and vision, but is a further proof of the road we have taken in fundamentally transforming a very slow and reactive UK telco market. Together with the new management team, the road ahead is very exciting indeed.Hyperoptic Chairman, Boris Ivanovic
Mubadala Investment Company is the investment arm of the Government of Abu Dhabi and as part of the deal that gives Mubadala a minority stake in Hyperoptic Mounir Barakat, Executive Director ICT will be joining the Hyperoptic Board of Directors.
As evidence of the increasing pace of roll-out needed a 5,000 km long metro network will be created making extensive use of PIA (Passive Infrastructure Access i.e. the duct and poles that Openreach maintain). The aim of a wider metro network is to make deploying to smaller apartment blocks, homes and businesses rather than the traditional Hyperoptic image of a 100 flat tower block.
As things stand today we know of 320,586 premises where the Hyperoptic service is available, so to reach two million by the end of 2021 needs this to increase at a rate of around 47,000 premises a month. NOTE: With Hyperoptic often deploying to new build apartments and the three month cycle of the release of postcode location by ONS we will be a few thousand premises behind.
Building 1.7 million premises of FTTB with £500m gives a build cost of around £294 per property which is in line with what you would expect from delivering to MDU (Multiple Dwelling Units) and explains why some European cities with much higher proportions of the population living in apartments embarked down the full fibre path previously.