3rd Sep 2014 07:00
LONDON (Alliance News) - CityFibre Infrastructure Holdings PLC said Wednesday that it has signed an agreement with Scotland-based ICT service provider Internet For Business, to deploy a gigabit-capable dark fibre network throughout Aberdeen, as the first step in the company's plan to establish Aberdeen as Scotland's first Gigabit City.
The designer, builder, owner and operator of fibre optic infrastructure said the initial 50 kilometre network build phase - of a total anticipated build of up to 120 kilometres - is backed by a contractual offtake commitment from IFB to migrate and upsell existing business leased line customers onto CityFibre's infrastructure, as well as to convert new customers from its existing pipeline.
The total contract value to capex coverage ratio during the initial phase of the contract-backed build is anticipated to be "well within the company's stated target range," said CityFibre.
Aberdeen has been selected as the next market for CityFibre to enter as its local economy accounts for 28% of Scotland's gross domestic product and is home to 30% of the country's top 100 businesses, said the AIM-listed company. "The network will bring much-needed alternative local access fibre infrastructure to the city, which was passed over in the cable network deployments of the 1980's and 1990's."
Pending successful completion of this first phase of network build, CityFibre's pro forma fibre footprint, which includes its in-progress projects in York, Coventry, Peterborough and Kirklees, will exceed 680 route kilometres of local access fibre and connect over 1,200 customer sites, said the company.
This expanded footprint represents an addressable market of over 2,400 public sector sites, 1,200 cell sites, 40,000 businesses and 600,000 homes, CityFibre added.
The network roll-out will be demand-led and will follow CityFibre's network design concept, accommodating current and future capacity requirements from the public sector, private businesses, mobile operators and local data centres.
Based on a number of key sites selected in conjunction with local partner Internet For Business, planning for the network's deployment is already underway and will initially focus on the centre and south of the city, including industrial estates such as Tullos and Altens, as well as the north as far as Dyce and The Bridge of Don.
Subject to demand, the build programme may be extended to areas in the west of the city, such as Westhill and Kingswells, said CityFibre, which will soon launch a demand aggregation campaign allowing Aberdeen's 6,000 businesses to register their interest and help shape the network route, it said.
To date the CityFibre has launched three Gigabit City projects in York, Peterborough, and Coventry, where city-wide pure fibre networks known as 'COREs' bring internet connectivity and the benefits of gigabit speeds to the city's community.
By Alice Attwood; [email protected]; @AliceAtAlliance
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