FTTHForum 2011 James Enck, city fibre holdings

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FTTHForum 2011 James Enck, city fibre holdings

  1. 1. UK FTTx: The Sleeper Awakes Challenging the Status Quo in a Rapidly Changing Market James Enck Corporate Development 9 November, 2011 BudapestStrictly Confidential 1
  2. 2. The UK’s long, dark night is coming to an end.It’s awakening to a new world of possibilities… Enabled by fibre! 2 Strictly Confidential
  3. 3. The UK hasn’t even been on the radar screenHigh internet adoption, poor connectivity Source: FTTH Council Europe and IDATE Internet population penetration Connections >5Mbps Iceland Netherlands Norway Romania Sweden Belgium Netherlands Latvia Denmark Denmark UK Czech Republic Germany Portugal Belgium Switzerland Switzerland Norway Latvia Sweden Ireland IcelandCzech Republic Ireland Portugal Germany Romania UK 0% 20% 40% 60% 80% 100% 0% 10% 20% 30% 40% 50% 60% Source: www.internetworldstats.com Source: Akamai Strictly Confidential
  4. 4. Nature abhors a vacuum, so does the marketThere is a huge gap to be filled by entrepreneurial capital Funding for NGA Pledges announced or assumed £bn Private Sector 25.0 FTTH = £25-28bn BT £2.5bn 22.5 Fujitsu – Note 1 £1.5bn 20.0 Government BDUK Fund – Note 2 £0.83bn 17.5 EU Funding – Note 3 £1.0bn 15.0 FTTH = £15bn Total £5.83bn Lower costs – 12.5 DIY, pole/duct Source: Independent Networks Cooperative Association sharing 10.0 Note 1 – Fujitsu announcement via press release, but their 7.5 pledge is dependent on receiving £500m of the NGA fund. BT FTTC = £6bn Therefore, this commitment is highly speculative. 5.0 Note 2 – The BDUK fund is £530m in this government 2.5 term, the remaining £300m is dependent on re-election 0 Note 3 – EU funding is speculative and no commitment has been secured Reality check – only £3.0bn is on the table today!!! Source: BSG/Analysys Mason report 2008 4 Strictly confidential
  5. 5. 5Strictly Confidential
  6. 6. Then, in the summer of 2011…A sudden burst of activity from newcomers FTTB in large-scale MDUs, high-density urban Disruptive dual-play fat-pipe proposition Team previously built BE Unlimited and Bostream Demand aggregation in affluent villages Single-play fat-pipe proposition Acquired service provider Rutland Telecom Community Benefit Society structure Incentives for foundation shareholders Value proposition built around broad economic benefits 6 Strictly Confidential
  7. 7. Suddenly, the puzzle gets more interesting. 7 Strictly Confidential
  8. 8. Introducing CityFibre HoldingsA new force in UK fibre infrastructureWho we are: Founded as acquisition vehicle January 2011, transaction closed April 2011 We are a re-start, not a start-up Extensive experience of building successful fibre- based telecoms companies Strong track record of attracting and deploying capital for large infrastructure projectsWhy we’re unique: Holistic approach delivering a well-planned and highly- utilised citywide fibre infrastructure in second tier UK cities – addresses all key market stakeholders High demand from our anchor tenant partners Building a new force from a strong existing asset base Audacious target of 1.0m homes and 50,000 business by end of 2015 8 Strictly Confidential
  9. 9. Valuable physical assetsWhat we acquired gives us a head start The leading independent fibre The single largest FTTH deployment infrastructure provider in secondary in the UK to date UK citiesDark fibre provider: 100+ contracts; over £16m in contracted revenue 261km of duct and 29,000km of fibre in key secondary cities 354 buildings and data centres connected to the network York (pictured) alone has 95km of cable and 103 connected buildings Mission critical dark fibre services for local authority clients: health, education, police, local government etc.Fibre to the home: Bournemouth – UK’s largest FTTH project. 24,000 homes passed and ready for service by year end. Trial customers live today, commercial launch in Q1 2012. PON architecture - symmetrical 100Mbps and 1Gbps services MOUs in place with other UK cities representing over 1 million homes – currently in discussions over selection of next cityWholesale platform: Layer 2 – active layer for operating the FTTH network Interconnects in common format to all 3rd party service providers 9 Strictly Confidential
  10. 10. Our major marketsA solid platform for expansion Dundee: 29km of cable, 29km of duct, 99 access points, 18 buildings on net Newcastle: 11km of cable, 10km of duct, 68 access points, 7 York: 95km of cable, buildings on net 91km of duct, 561 access points, >100 buildings on net Sheffield: 20km of cable, 15km of duct, Derby: 15km of cable, 112 access points, 23 11km of duct, 64 access buildings on net points, 10 buildings on net Weston Super Mare: 10km of cable, 10km of duct, 76 access points, 7 buildings on net Bath: 12km of cable, Bournemouth: FTTH 8km of duct, 58 access 24,000 homes passed points, 11 buildings on The largest FTTH net project in the UK! 10 Strictly confidential
  11. 11. Our vision of the well-connected communityFilling the infrastructure void in second-tier citiesOne citywide fibre A well planned fibre network that blends metro network design with FTTPnetwork: to ensure an efficient and highly utilised network. Capable of passive (dark fibre) and active (assured Ethernet) services.Servicing many Local Government: 200 buildings; councils, NHS, education, police, etc.segments Enterprise: Data centres, financial services, etc(typical 2nd tier city): Carrier: 100+ 3G cell sites – growing with 4G and Wi-Fi SME: 5,000+ business Consumer: 100,000 homes via service provider partners 11 Strictly Confidential
  12. 12. The next step in our planThe train is leaving the station! Recently appointed Macquarie Capital as advisor on our capital raise. A globally- recognized specialist in communications infrastructure-related investment banking adds great depth to our ability to fund our £500m investment plan. 12 Strictly Confidential
  13. 13. What to look out for in the next few monthsProving the case step by step Service provider discussions ongoing – both Tier 1 and smaller players Our first service provider relationship announcement is imminent Bournemouth network live today, on track for commercial launch in Q1 More service providers to be onboard in early 2012 Metro business pipeline continues to grow, including some unsolicited inbound enquiries – demand for fibre infrastructure is intensifying Currently in advanced analysis work and discussions on candidates for subsequent FTTP cities The opportunity is real, and so are we! 13 Strictly Confidential
  14. 14. Thank youStrictly Confidential 14

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