ftthforum 2011 james enck, city fibre holdings
TRANSCRIPT
Strictly Confidential
UK FTTx: The Sleeper
Awakes
Challenging the Status Quo in
a Rapidly Changing Market
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James Enck
Corporate Development
9 November, 2011
Budapest
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The UK’s long, dark night is coming to an end.
It’s awakening to a new world of possibilities…
Enabled by fibre!
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The UK hasn’t even been on the radar screen
High internet adoption, poor connectivity
Source: FTTH Council Europe and IDATE
0% 10% 20% 30% 40% 50% 60%
UK
Germany
Ireland
Iceland
Sweden
Norway
Switzerland
Portugal
Czech Republic
Denmark
Latvia
Belgium
Romania
Netherlands
0% 20% 40% 60% 80% 100%
Romania
Portugal
Czech Republic
Ireland
Latvia
Switzerland
Belgium
Germany
UK
Denmark
Netherlands
Sweden
Norway
Iceland
Internet population penetration Connections >5Mbps
Source: www.internetworldstats.com Source: Akamai
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Nature abhors a vacuum, so does the market
There is a huge gap to be filled by entrepreneurial capital
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22.5
20.0
17.5
15.0
12.5
10.0
7.5
5.0
2.5
0
£bn
FTTH = £15bn
Lower costs –
DIY, pole/duct
sharing
25.0 FTTH = £25-28bn
Source: Independent Networks Cooperative Association
Note 1 – Fujitsu announcement via press release, but their
pledge is dependent on receiving £500m of the NGA fund.
Therefore, this commitment is highly speculative.
Note 2 – The BDUK fund is £530m in this government
term, the remaining £300m is dependent on re-election
Note 3 – EU funding is speculative and no commitment
has been secured
BT FTTC = £6bn
Private Sector
BT £2.5bn
Fujitsu – Note 1 £1.5bn
Government
BDUK Fund – Note 2 £0.83bn
EU Funding – Note 3 £1.0bn
Total £5.83bn
Funding for NGA Pledges announced or assumed
Source: BSG/Analysys Mason report 2008
Reality check – only £3.0bn is on the table today!!!
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Then, in the summer of 2011…
A sudden burst of activity from newcomers
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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
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Suddenly, the puzzle gets more interesting.
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Introducing CityFibre Holdings
A new force in UK fibre infrastructure
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Who 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 projects
Why 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
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Valuable physical assets
What we acquired gives us a head start
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Dark 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 city
Wholesale platform: Layer 2 – active layer for operating the FTTH network
Interconnects in common format to all 3rd party service providers
The single largest FTTH deployment
in the UK to date
The leading independent fibre
infrastructure provider in secondary
UK cities
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Our major markets
A solid platform for expansion
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Sheffield: 20km of
cable, 15km of duct,
112 access points, 23
buildings on net
York: 95km of cable,
91km of duct, 561
access points, >100
buildings on net
Bath: 12km of cable,
8km of duct, 58 access
points, 11 buildings on
net
Bournemouth: FTTH
24,000 homes passed
The largest FTTH
project in the UK!
Derby: 15km of cable,
11km of duct, 64 access
points, 10 buildings on
net
Newcastle: 11km of
cable, 10km of duct, 68
access points, 7
buildings on net
Weston Super Mare:
10km of cable, 10km of
duct, 76 access points,
7 buildings on net
Dundee: 29km of cable,
29km of duct, 99 access
points, 18 buildings on
net
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Our vision of the well-connected community
Filling the infrastructure void in second-tier cities
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One citywide fibre
network:
A well planned fibre network that blends metro network design with FTTP
to ensure an efficient and highly utilised network.
Capable of passive (dark fibre) and active (assured Ethernet) services.
Servicing many
segments
(typical 2nd tier city):
Local Government:
Enterprise:
Carrier:
SME:
Consumer:
200 buildings; councils, NHS, education, police, etc.
Data centres, financial services, etc
100+ 3G cell sites – growing with 4G and Wi-Fi
5,000+ business
100,000 homes via service provider partners
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The next step in our plan
The train is leaving the station!
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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.
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What to look out for in the next few months
Proving the case step by step
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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!
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Thank you
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