The money will be targeted at fibre-to-the-premise services, rather than the FTTC being rolled out in most parts of the country. Currently only 2 percent of the UK has access to 'full-fibre' connections.
The government already said a year ago that it was looking at providing a boost to fibre operators. So far most of the public money invested in broadband infrastructure has gone to BT, whose strategy has been to roll out fibre to the roadside cabinet, not to the home. The new money the government is promising will go to small operators to help cover up to 2 million homes and businesses.
The initiative was welcomed by Cityfibre, which is rolling out fibre in 40 cities across the UK and targets a presence in 100 by 2025. Sky also welcomed the plans, saying it's in line with the company's view that "the future is full fibre". The company added that the government also needs to take action on the future of BT Openreach in order to drive more investment in fibre. TalkTalk, which recently acquired Sky's stake in their FTTH venture in York with Cityfibre, also was pleased with the support for fibre and alternative operators.
The government will also offer local authorities the chance to bid for part of a GBP 740 million fund to trial 5G mobile networks, the Guardian reports. This money will go in part to developing fibre-optic backhaul systems to provide greater wireless capacity.
