The UK Infrastructure Bank has announced a £250 million debt investment in new next generation fibre broadband company nexfibre.
The Bank is a cornerstone lender in the project, which is backed by total investment of £4.5 billion in its initial phase.
nexfibre, which is a partnership between InfraVia Capital Partners, Liberty Global and Telefónica, is in the process of rolling out full-fibre broadband to 5 million homes across the UK by 2026 through Liberty Global and Telefónica’s Virgin Media. An additional 2 million homes could follow later.
nexfibre’s hyper-fast network uses the latest XGS-PON architecture and will enable Virgin Media O2 to extend its fibre footprint to up to 23 million homes by 2028, around 80% of the UK.
The Bank’s loan is targeted towards locations which have to date had poorer digital connectivity or historically lower productivity. The investment is expected to help boost growth in these areas and reduce existing inequalities in accessing vital digital services.
Launched in June 2021, the Infrastructure Bank is backed by the UK government and is providing £22 billion of infrastructure finance and partnering with the private sector and local government to finance “a green industrial revolution and drive growth across the country”.
The project is one of several recent digital initiatives that will help to accelerate the delivery of the Government’s ambition to reach national gigabit capable broadband coverage to at least 99% of premises by 2030, with a target of 85% of premises expected to be met by 2025.
