Goldman Sachs-backed Cityfibre to spend £2.5bn on full-fibre broadband roll out

British broadband operator Cityfibre has today said it will invest £2.5bn on rolling out full-fibre broadband across its network of 37 towns and cities in the UK.

Reaching 5m homes, this will make up one third of the government's target to serve 15m by 2025.

The company was bought in June earlier this year by Antin Infrastructure Partners and Goldman Sachs West Street Infrastructure Partners for $750m (£580m).

Cityfibre said the investment will create 5,000 construction jobs over the period. Development is currently underway in Milton Keynes, Petersborough and Aberdeen, with construction due to begin in Edinburgh, Stirling, Coventry and Huddersfield by the end of the year.

Read more: Roll out of super-fast broadband to City businesses

"With a head-start in 37 towns and cities, this full fibre investment plan enables us to further accelerate our roll out, catalysing huge economic growth in regional towns and cities across the country and transforming the UK’s digital future," said Cityfibre chief Greg Mesch.

"We now need to work together across government, Ofcom and industry to create a level-playing field that continues to encourage investment from multiple network operators, so that full fibre can be delivered as quickly and effectively as possible."

Digital secretary Jeremy Wright heralded the news under the government's telecoms innovation plan.

Vodafone has been selected as the gigabit broadband provider for Cityfibre's first partnership, and will launch in Milton Keynes as part of the roll out.