Hyperoptic banks £21m Europe funding for 1 Gbps fibre rollout

Challenger ISP Hyperoptic has received £21 million from the European Investment Bank (EIB) to provide 1 Gbps fibre broadband to more than a half-a-million homes in cities across the UK.

The eight-year investment will help Hyperoptic with its expansion ambitions to bring 1 Gbps Internet access to urban areas that only have slow access at present. The ISP currently operates in 13 cities throughout the UK, with expansion plans to take it to 20. More specifically, the expanded network will aim to reach 300,000 homes in the next three years.

“Hyperoptic is excited by the European Investment Bank’s investment, which will further fuel our roll out and addressable market expansion,” said Dana Tobak, CEO of Hyperoptic. “The confidence of both EIB and Soros Fund Management LLC supports the importance of FTTP in providing a boost to the UK’s digital infrastructure and economy.”

The investment aligns well to the European Union’s efforts to provide more competition within the telco market. Although BT, Virgin Media and Vodafone would be seen to dominate the UK market in recent years, challenger brands such Hyperoptic and CityFibre have been more active in driving diversity for consumers.

Having launched in 2011 in London, it claims to be the first ISP to provide gigabit services to residents offering both broadband and phone services. Prior to the EIB investment, the company received a £50 million investment in May 2013 from Quantum Strategic Partners, and subsequently moved outside of the London boroughs, offering services in Reading, Cardiff and Bristol.

“The European Investment Bank is pleased to support Hyperoptic’s roll-out of super-fast broadband in cities across the UK,” said Jonathan Taylor, European Investment Bank Vice President. “This exciting new initiative will transform economic activity, healthcare, education and access to key services and represents the EIB’s first targeted support to address slow urban communications in UK.”