Hyperoptic, a prominent gigabit broadband provider, has secured £100 million in funding from major European banks. This investment aims to enhance its full fibre network.
Currently serving 28 cities and towns in the UK, Hyperoptic’s network has skyrocketed fivefold over six years, reaching 350,000 homes and businesses. The company’s ambition is to expand its network sixfold by 2022 and to five million homes by 2025.
Significant Financial Backing
The funding comes from a consortium of four European banks: BNP Paribas, ING, RBS, and NIBC. This financial injection is crucial for the acceleration of Hyperoptic’s ambitious network expansion plans. Such backing allows the company to further solidify its position as a leader in the broadband sector.
Hyperoptic is set to leverage these funds to grow its full fibre network by sixfold, aiming to serve two million homes by 2022 and expand to five million by 2025. The company utilises Fibre-to-the-Premises (FTTP) technology, offering speeds of 1,000Mbps, making it the UK’s fastest broadband provider.
Company’s Strategy and Growth
Dana Tobak, CEO of Hyperoptic, expressed pride in creating a network of ‘gigabit cities’ that has removed connectivity barriers for residents. The CEO acknowledged that while private funding and partnerships have played a significant role, it is the customer demand that has predominantly driven growth.
Through strategic partnerships with developers, freeholders, and local councils, Hyperoptic has been able to expand its network footprint significantly. With such initiatives, the company continues to grow, meeting the escalating demand for high-speed connectivity.
Governmental Support
The UK government’s commitment to digital infrastructure paves the way for Hyperoptic’s expansion.
Andrew Jones, Exchequer Secretary to the Treasury, highlighted the government’s investment of over £1 billion in digital communications, which includes a £400 million Digital Infrastructure Investment fund.
This governmental support aims to stimulate the broadband market and expand full-fibre networks nationwide. Hyperoptic is a key beneficiary of these initiatives, aligning with the national strategy to provide world-class digital infrastructure.
Challenging Traditional Broadband
Hyperoptic’s FTTP technology challenges traditional broadband services, providing a future-proof broadband alternative that guarantees high-speed, symmetrical gigabit broadband services.
The company’s remarkable growth trajectory is exemplified by its installation of over 20 million metres of dedicated cable, a distance greater than that from the UK to New Zealand.
Such massive infrastructure investments illustrate Hyperoptic’s commitment to revolutionising the broadband landscape, offering consumers a reliable, high-speed internet connection free from traditional constraints.
Historical Funding and Investment
Since its inception, Hyperoptic has raised significant funds to fuel its expansion. In 2016, it received £21 million from the European Investment Bank, followed by equity investment in 2013 led by Quantum Strategic Partners Ltd, managed by Soros Fund Management LLC.
This historical funding foundation has set the stage for the latest round of investment, further enabling Hyperoptic to upscale its infrastructure and reach.
Future Developments
Looking forward, Hyperoptic plans continuous enhancements to its services, promising innovations in broadband technology that align with evolving consumer needs.
As the company advances towards its ambitious 2025 target of five million home connections, it positions itself at the forefront of the digital connectivity revolution.
With £100 million in new funding, Hyperoptic is well-positioned to advance its full fibre rollout across the UK.
The company remains a pivotal player in the drive towards ultra-fast, reliable broadband, bolstered by both private partnerships and governmental support.