TalkTalk launches new fibre-optic network subsidiary

21st Nov 2018 12:08

(Sharecast News) - TalkTalk announced an acceleration of its full fibre strategy on Wednesday, with the launch of a company to build a new broadband network across Britain.The FTSE 250 telecoms retailer said the subsidiary, to be called 'FibreNation', would roll out faster, more reliable broadband to three million homes and businesses.It had previously announced its intention to invest in a new broadband network, giving further details about its plans on Wednesday, with FibreNation being established under an independent chair to rollout full fibre infrastructure.TalkTalk confirmed that the first three towns to benefit would be Harrogate, Ripon and Knaresborough, with the rollout building on the company's full fibre trial in York, which had seen the city benefit from what it claimed was Britain's fastest internet.The combined footprint would reach more than 100,000 homes and businesses.Full fibre is 100x faster than standard broadband, TalkTalk claimed, and offered guaranteed speeds rather than variable ones.With speeds of 1000Mbps, customers could download a high-definition film in seven seconds, TalkTalk said, compared to 25 minutes on a standard connection.The announcement came as the government set its own ambitious targets to increase the number of homes served by full fibre.Britain currently ranked almost the lowest in Europe for full fibre availability, with 5% of UK homes and businesses having access to the technology, compared to more than 80% elsewhere in Europe.The government reportedly hoped 15 million homes and businesses would benefit from full fibre services by 2025.TalkTalk would be the first customer on FibreNation, wholesaling access to the network to sell full fibre services to its customers.That arrangement was an expansion on the York trial, where both TalkTalk and Sky purchased wholesale access from the network.Sky would remain a wholesale customer of the new network in the expanded footprint.TalkTalk was in discussions with potential partners, including Infracapital, to develop an appropriate long-term capital structure for FibreNation, the company said.Both companies would not be progressing on the basis of the heads of terms announced in February, however.The announcement on Wednesday came as TalkTalk also reported strong growth, with a seventh consecutive quarter of expansion confirmed, having added over 100,000 customers over the last six months."We're delighted to launch FibreNation and set out our plan to deliver world class broadband to three million homes and businesses," said TalkTalk chief executive officer Tristia Harrison."For too long, Britain has trailed the rest of the world when it comes to broadband speed and reliability."Harrison said the company was "determined" to change that, and invest in faster, more reliable broadband."This is just the beginning of our plans to be at the heart of Britain's full fibre future."We are very confident in the asset we have created in York and will continue discussions with potential partners to agree a capital structure that reflects that. In the meantime, we're accelerating our rollout plans."FibreNation would be chaired by Paul Reynolds, who was an executive at BT for a number of years before becoming chief executive officer at Telecom New Zealand, during the disastrous roll-out of its new 3G mobile network in 2009.In recent years he has been a director of a number of telecoms and technology firms in the UK, Ireland, Australia and New Zealand.Reynolds said that, having rolled out full fibre networks "around the world", he was excited to start building in Britain."This infrastructure will transform how families and businesses use the internet and I'm committed to ensuring it's affordable to all."I'm delighted to have two of the UK's largest internet service providers as customers and look forward to working with them to deliver the faster, more reliable broadband Britain needs."