8th Sep 2015 08:56
LONDON (Alliance News) - CityFibre Infrastructure Holdings PLC Tuesday said it has extended its Gigabit City project in Edinburgh to an additional 294 council-owned sites, in an agreement worth at least GBP5.6 million.
The fibre optic infrastructure company said that the seven-year deal will be carried out in conjunction with telecommunications provider Commsworld, with options to extend to a maximum of 19 years and a lifetime contract value of GBP16 million.
It will replace the copper circuits provided as part of a long-term contract by BT, which CityFibre said are expensive and capacity-constrained.
CityFibre added that the contract is part of a wider GBP186 million outsourced ICT procurement for the council won by global ICT firm CGI, which will create the largest pure fibre city roll-out in the UK.
"This is CityFibre's largest contract to date and in such a prestigious city as Edinburgh, it is a landmark in our growth as a firm. In a matter of months, CityFibre's partnership with Commsworld has begun a truly transformational infrastructure project in the city, and as the world's bandwidth consumption is set to triple in the next four years, Edinburgh is in an advantageous position to capitalise on the continued shift towards a digital economy," Chief Executive Greg Mesch said in a statement.
"This contract solidifies the power of our Gigabit City model and the appetite from city leaders to embrace a new generation of infrastructure," he added.
Shares in CityFibre were trading up 8.1% at 60.00 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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