In what could be a crucial development in its efforts to produce fibre optic broadband infrastructure across the UK by 2015, CityFibre has announced plans to work with Citigroup after closing a financing facility with the financial services company.

Citi will now join Macquarie Capital in advising the company in its plans to develop metro-based fibre infrastructure across ten UK cities, something which could have a serious impact on the provision of next-generation broadband to as wide a demographic as possible.

CityFibre is set to focus on what it calls the UK's second-tier cities - meaning those which are currently lagging behind major broadband hotspots in terms of speed and infrastructure - and attempt to bring them up to pace with their counterparts.

The new financial flexibility afforded through working with Citi is likely to help it achieve these aims, the company claimed.

CityFibre chief executive officer Greg Mesch expressed his pleasure at the opportunity to work with such a prestigious financial organisation and claimed he is optimistic about the relationship between the two firms.

"[Citi] understand the vital role of fibre infrastructure and recognise the unprecedented business opportunity afforded by acute underinvestment in the UK," added Mr Mesch.

Michael Lavelle, head of EMEA capital markets at Citi, echoed these sentiments and claimed CityFibre is "well-placed" to roll out its alternative fibre broadband infrastructure over the coming years.

CityFibre has made ongoing efforts to secure a degree of private funding, despite the government's ostensible commitment to providing super-fast broadband across the UK in the next few years.

Late last year, after the chancellor's Autumn Statement, the company argued that Britain was still lagging behind the rest of Europe in terms of internet access and expressed opinion that the government funding set aside was insufficient to change this.

"This type of incremental approach would put the UK at a huge disadvantage for years to come as well as creating the need for another wave of significant investment to future-proof the infrastructure," warned chief communications officer Mark Collins.
 

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