Mobile provider Three taps Cityfibre for 5G rollout
Mobile operator Three today announced that it has chosen challenger broadband firm Cityfibre to help build its 5G network.
The deal means Cityfibre will be Three’s preferred provider of digital infrastructure for its network outside London.
The first phase of the agreement will connect the mobile company’s 5G network in 23 cities where the broadband company provides full-fibre by the end of the year.
Three is the last of the UK’s four major mobile operators to roll out the next-generation mobile network for consumers. The firm was due to set up 5G in 25 locations by the end of 2019, but was forced to push back its plans after the rollout proved more complicated than expected.
However, the tie-up comes as a major boost to Cityfibre, which last month bought Talktalk’s Fibrenation division for £200m.
The Goldman Sachs-backed telecoms company had been closing in on the deal in November, but put the takeover on ice after the Labour Party unveiled plans to nationalise BT and offer universal free full-fibre broadband if elected.
“This is a huge vote of confidence in Cityfibre from a national mobile operator with big plans for 5G,” said Cityfibre chief executive Greg Mesch.
“Three’s decision to leverage our rapidly expanding networks nationwide shows the critical role full fibre infrastructure has to underpin 5G rollouts and reinforces Cityfibre’s position as the UK’s third national digital infrastructure platform.”
Cityfibre has already secured a partnership with Vodafone to provide full-fibre broadband to 1m homes and businesses by 2021, with plans to extend this to 5m by 2025. Overall, the company is pumping £4bn into its network rollout plan, aiming to reach 8m properties across the UK.
While full-fibre is most frequently associated with broadband, the network is also crucial for carrying mobile data to 5G cell sites, which then connect to mobile devices wirelessly.
“A competitive fibre backhaul market is critical for the fast and efficient rollout of 5G,” said Three chief executive Dave Dyson.
“Cityfibre are aggressively rolling out fibre across Britain and our strategic partnership with them will use the UK’s largest 5G spectrum portfolio to deliver the fastest 5G network nationwide.”