TalkTalk has confirmed it’s in talks with infrastructure investment fund Infracapital to connect 3 million homes and businesses “in mid-sized towns and cities in the UK” to ultrafast, full fibre broadband.
The deal would see the budget ISP invest £100m in a new independent company, with Infracapital providing a further £400m, which would be used to roll out a new 1Gbps ultrafast, Fibre to the Premises network.
In addition to its cash investment, TalkTalk would be the new firm’s founding wholesale customer, “providing a minimum volume commitment.”
Charles Dunstone, Executive Chairman of TalkTalk said: “By signing heads of terms with Infracapital we are making good progress towards putting TalkTalk at the heart of Britain’s fibre future by building a full fibre network, bringing faster, more reliable internet to millions of homes and businesses.”
News of the potential new network was confirmed in the firm’s latest market update which also revealed it added 37,000 new retail and wholesale customers to its existing network in the third quarter of the financial year.
It’s also reduced churn – the number of customers cancelling their services – to 1.3%, down from 1.6% in the same period last year.