Nov 9, 2017

Vodafone has the fibre to challenge Openreach-Virgin duopoly

Under a capital expenditure programme of £500m-£700m, CityFibre will build a fibre network in 12 cities, which Vodafone will market and use on wholesale terms. Vodafone and City Fibre are effectively parking their little tractors on Openreach and Virgin Media's front lawn - by creating a third competitor network in second-tier cities across Britain. Openreach had been in talks with Vodafone and others about teaming up to deliver more fibre to the home - after much groundwork by regulator Ofcom. Vodafone wants Openreach to stop scraping as much cash as it can from its old copper wire assets and invest more heavily in fibre. Still, if Vodafone and CityFibre's little tractors gain traction, they may show the industry - and the regulator - that higher wholesale prices are not the only route to broadband customers' doors.

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