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Hyperoptic to expand 1Gbps network with
GBP 21 million backing from EIB
July 19, 2016
The European Investment Bank (EIB) has agreed to provide GBP 21 million for investment by Hyperoptic to provide 1 Gbps fibre broadband to more than a half-a-million homes in cities across the UK. This significant investment from EIB along with Quantum Strategic Partners Ltd. (Quantum), a private investment fund managed by Soros Fund Management LLC, brings the total investment into Hyperoptic to more than GBP 75 million. EIB’s investment along with continued support from Quantum further validates Hyperoptic’s business model, execution ability, and ability to remain the largest 1 Gbps Fibre-to-the-Premises (FTTP) broadband provider in the UK. The larger footprint will enable even more residential and business users to benefit from the UK’s fastest internet speeds using more advanced broadband infrastructure than is currently available through incumbents. This represents the European Investment Bank’s largest ever dedicated backing for an internet network investment in the UK.
“Hyperoptic is excited by the European Investment Bank’s investment, which will further fuel our roll out and addressable market expansion. The confidence of both EIB and Soros Fund Management LLC supports the importance of FTTP in providing a boost to the UK’s digital infrastructure and economy,” said Dana Tobak, CEO of Hyperoptic.
The new eight-year European Investment Bank loan will be used to support Hyperoptic’s planned expansion of 1 Gbps Internet access to urban areas that only have slow access at present. Hyperoptic currently operates in 13 UK cities, but has already announced expansion to 20. The EIB backed network expansion seeks to reach more than 300,000 homes in the next 3 years.
“The European Investment Bank is pleased to support Hyperoptic’s roll-out of super-fast broadband in cities across the UK. This exciting new initiative will transform economic activity, healthcare, education and access to key services and represents the EIB’s first targeted support to address slow urban communications in UK,” said Jonathan Taylor, European Investment Bank Vice President.
Hyperoptic has been growing its network reach by over 100% per year in the past few years and will continue its current pace of growth within existing cities and expanding by opening new ones. With the most flexible product set on the market, Hyperoptic ensures customer satisfaction and an excellent Fibre experience. Recently awarded ISPA’s Best Superfast broadband for the 4th year running, Hyperoptic continues to be a beacon and leader in rolling out 1 Gbps FTTP broadband across the UK.
Since 1975 the European Investment Bank has provided more than GBP five billion for telecom broadband and telecommunications across the UK and has supported investment by Vodafone, EE, British Telecom, Gigaclear, Arqiva and Inmarsat.
Over the last five years the European Investment Bank has provided nearly EUR 13 billion to improve broadband and telecommunications across Europe.
Lending by the European Investment Bank last year totaled GBP 5.6 billion and represented the largest annual engagement since the start of EIB lending in the UK in 1973. This supported nearly GBP 16 billion of overall investment in 40 projects across the country. The European Investment Bank is directly owned by the 28 European Union member states, including a 16% share held by the UK government.
The European Investment Bank’s loan to Hyperoptic is supported by ‘InnovFin – EU Finance for Innovators’, MidCap Growth Finance with the financial backing of the European Union under Horizon 2020 Financial Instruments.