The two partners are Exa Networks and Leeds-based Diva Telecom. The two deals carry a combined minimum Total Contract Value of £4.9m over six-year terms:
•Exa is committing to a minimum of 250 connections focusing on the Bradford area, as well as two diverse circuits over the acquired long distance network connecting the city to Leeds, for TCV of £3.5m.
•Diva Telecom is committing to a minimum of 100 connections in Leeds, for a TCV of £1.4m.
With a combined duct route length of approximately 190 kilometres, CityFibre’s Leeds and Bradford networks are amongst the larger assets acquired in the January transaction, providing Exa and Diva with dense coverage of one of the largest metro areas outside London, to deliver superior gigabit connectivity to area schools and businesses at a lower cost and with faster time to market.
TCV-to-capex coverage for these contracts is in excess of guidance given previously, as network provisioning to fulfill the contracts heavily utilises the existing acquired assets.
In addition to today’s contract, Exa has agreed a strategic national partnership with CityFibre targeting the UK’s education sector. Exa already serves thousands of schools and colleges across the country with market-leading connectivity and IT security services. The partnership will support Exa as it targets educational institutions across CityFibre’s national network footprint, transforming their digital capabilities with future-proof pure fibre connectivity.
Greg Mesch, Chief Executive of CityFibre, commented: “Commercialising our national network assets is a key strategic focus for us, and so we are very pleased to be adding two new key partners on our Leeds and Bradford networks. Exa and Diva are both highly commercial organisations with great local market knowledge and a hard-earned reputation for delivering value to their customers. Our combined route length of 190 kilometres of ducted fibre in Leeds and Bradford gives Exa and Diva great coverage of their target markets with a differentiated product offering, bringing much-needed enhancement to connectivity in the business and public sector estates and stimulating the local economy. This is the beginning of our journey together.
“I’m delighted that these agreements continue to demonstrate CityFibre’s ability to rapidly commercialise the assets we acquired in January. Since the acquisition we have contracted commitment of 450 new sites in less than 90 days, underlining the importance to the market of an alternative infrastructure provider to BT Openreach.”