Acquisition of RedCentric access ducts and fibre networks by CityFibre has created free access to wholesale fibre to 40 more cities in the UK. This is a huge deal as the network assets have a total coverage of 137km bringing to CityFibre an additional 40 major metro networks within the UK. The fact that the assets were belonging to RedCentric a one of the top IT managed fibre network services providers, opens up a stage for stiff competition between CityFibre and BT Openreach.
CityFibre being a leading national builder of Gigabit cities gets an edge as an alternative trusted provider of fibre network infrastructure. This is because it poses metro ducts and fibre routes in UK’s major cities. CityFibre has an extensive national network that connects the cities to the major data center as well as to important points based in London.
The possession of RedCentric network assets has created three new fibre hotspots located in Portsmouth, Cambridge and Southampton cities. This does not only expand the market for CityFibre rather, it makes fibre network easily accessible to a large number of consumers within the cities and the environs. The decision of the company to possess 44km fibre network in Cambridge is likely to boost its service delivery to consumers as it qualifies as a major CityFibre’s Gigabit base. In addition, some of the assets were added to existing fibre network hotspots namely Northampton, Nottingham and Derby, a move that is likely to enhance their output.
However, the acquisition of fibre network assets by CityFibre has not driven RedCentric from the business. RedCentric will now concentrate on IT management of the network other than deal with construction, a role that has now been taken over by CityFibre. In this case, RedCentric has automatically become a remote customer of CityFibre. In fact, the two companies have signed a £4.5 leasing contract on some of the acquired assets providing services to a total of 188 consumers being served by RedCentric. Fraser Fisher, RedCentric CEO affirmed the company’s commitment to better service delivery as well as network efficiency to their customers in Cambridge and Portsmouth in partnership with CityFibre. An agreement has been put in place to balance the RedCentric’s national metro assets. This is a strategy put in place by RedCentric to intensify their potential fibre reach.
£5M fibre network assets deal between CityFibre and RedCentric resembles the recent KCOM deal that happened last winter. This will definitely boost the fibre network wholesale business within the UK as well as enhance service delivery in terms of construction and network management by the two companies as they both have unequalled expertise in the industry. CityFibre CEO Greg Mesch issued a statement saying that the acquisition of the network assets will unleash the potential of the previously underutilised fibre assets under the new shared infrastructure model of a fibre network. This is good news for consumers as there will be swift and efficient data hosting and processing in the region.