Lit is a vertically integrated altnet – both a network builder and ISP with a footprint of over 220,000 premises across more than 20 towns
CityFibre, the UK’s largest independent, full-fibre broadband provider, has completed its acquisition of Lit Fibre from Newlight Partners. The share-based acquisition, announced two months ago, is intended to accelerate CityFibre’s nationwide roll out by up to 300,000 premises.
CityFibre’s plan is to pass 8 million premises. Newlight Partners join CityFibre as minority shareholders.
Lit is a vertically integrated altnet – both a network builder and ISP with a footprint of over 220,000 premises across more than 20 towns in Wiltshire, Gloucestershire, Hertfordshire, Worcestershire, Essex and Suffolk. It serves a subscriber base of about 10,000 retail customers.
CityFibre has worked with Lit’s management team over the last two months to begin the integration of Lit’s 10Gbps XGS-PON network infrastructure into CityFibre’s wholesale network. They expect the integration to be completed later this year, enabling CityFibre’s ISP partners to access the same products, pricing and service experience across the extended footprint.
As a wholesale-only operator, CityFibre will explore options for the Lit ISP after the integration.
CityFibre intends to complete Lit’s work-in-progress deployment as well as most of its planned network implementations. In total, the network is expected to reach up to 300,000 premises by early 2025. Lit’s network is built exclusively using existing poles and ducts and so has “a highly attractive build cost per premises”.
Lit’s swift network integration will be prioritised: customers’ broadband services will not be affected by it. As a wholesale-only operator, CityFibre will explore options for the Lit ISP after the integration.
The acquisition of Lit is the first of several deals CityFibre says it expects to close over the next two years. It follows CityFibre’s decision to pursue altnet acquisitions as a strategic growth driver towards and potentially beyond its 8 million premises target. It wants to cement its position as the UK’s third digital infrastructure platform of scale, behind BT and Virgin Media 02.
Earlier this month, CityFibre reported its own customer connections exceeded 400,000, growing 77% year-on-year and with installations regularly exceeding 1,000 a day. Also, that quarterly revenues are increasing over 30% year-on-year, with a positive EBITDA performance for the first quarter of 2024. It continues to progress towards it 8 million premises passed target, with 6 million already built, in progress, acquired or underpinned by the government’s Project Gigabit contract awards.