Neil Woodford-backed CityFibre nets biggest ever deal by bringing superfast broadband to Glasgow

Oliver Gill
Follow Oliver
Inside The Victorian Graveyard Of The Glasgow Necropolis
Glasgow is the third largest city in the UK (Source: Getty)

Superfast broadband firm CityFibre today announced its biggest ever public sector deal – to deliver superfast internet to Glasgow.

The Neil Woodford-backed firm has agreed an initial seven-year contract worth £6.4m, with an option to extend to a maximum of 19 years.

Some 243km of network cabling will be constructed on 506 sites across Scotland's biggest city.

“The city’s full-fibre spine will be built with the future in mind, capable of supporting 5G mobile networks and laying the groundwork for an inevitable roll-out of fibre to every home and business in the city," said CityFibre boss Greg Mesch.

Aim-quoted CityFibre boasts cornerstone investments from Woodford and his former employer Invesco. The fund management duo own almost 40 per cent of the company between them.

Read more: London's broadband is in danger of being left behind, warns disruptor

CityFibre has sought to shake up the broadband market by establishing so-called "Gigabit cities" with the aim of being "a leading alternative" to BT's infrastructure arm Openreach.

Today's agreement supplements 50km of existing core metro infrastructure already built in central Glasgow.

Mesch added: “This will be the largest public-sector project in our history and makes us the leading digital infrastructure provider to the public sector in Scotland.”

Shares in CityFibre nosed up 1.7 per cent in morning trading – currently worth 59p each.

Read more: Star fund manager doubles-down in multi-million-pound Provident trade

Related articles