Investment firm acquires majority stake in Hyperoptic
The amount of investment in the UK broadband market particularly the full fibre segment continues to grow. Hopefully this latest news that has global investment firm KKR acquiring a majority stake from funds managed by Newlight Partners LP (“Newlight”) and Mubadala Investment Company. Financial details of the transaction were not disclosed will continue the trend of more investment leading to faster and more widespread roll-outs.
We are incredibly grateful to Newlight and Mubadala for their unwavering support and significant contributions to the success of Hyperoptic. Currently, only 8% of the UK has access to full fibre and less than half of that to symmetrical gigabit services.
We are confident that with the support of KKR and their significant expertise enabling high-growth businesses, our ambitious infrastructure plans to build our hyperfast network out to two million homes by 2021 and five million by 2024 will be realised.Chief Executive Officer Dana Tobak CBE
The financial details of the transaction have not been released, but KKR does have a track record in the European telecoms scene and with Hyperoptic continuing to be lead by Dana Tobak and Boris Ivanovic the existing formula for engaging with property developers as well as retro-fitting their service to existing buildings will continue.
The press release claims that Hyperoptic is the UK's largest residential Gigabit broadband provider. In terms of FTTP footprint Hyperoptic covers some 418,000 premises in our database, making them the second largest full fibre provider closely followed by Virgin Media with the RFOG footprint via Project Lightning. Openreach has the largest full fibre footprint but with none of the large retailers utilising its Gigabit options yet, Hyperoptic is able to lay claim to the largest title in terms of a reasonably priced Gigabit option. This may all change in the next few months, as BT Consumer is expected to launch a Gigabit option and if Virgin Media rapidly roll-outs DOCSIS 3.1 the old cable provider is actually going to be the dominant Gigabit provider in the UK for at least a couple of years.
The 8% full fibre figure is of course the Ofcom official figure from April 2019, our current tracking was updated to 9.55% on Saturday 12th October and the internal figure with extra FTTP found over the weekend has increased this to 9.58% and will continue to climb this week as we chase down the roll-outs from Openreach, Hyperoptic, Gigaclear, Vodafone Gigafast, Virgin Media and others.