Anyone seeking a foretaste of how rural communities will be connected in the future need look no further than the activities and ambitions of pure fibre network builder Gigaclear, according to Chief Executive Matthew Hare.
Hare is on a mission to liberate rural areas from inefficient broadband. He started Gigaclear from scratch in December 2010 with a business model directed at building and operating ultrafast, pure Fibre-To-The-Premises (FTTP) broadband networks in rural communities where the existing fixed network infrastructure under performs. "The aim is to give these communities faster and more reliable broadband than is available anywhere else in the UK," he said. "Living in a rural area doesn't mean you have to tolerate bad broadband. Using FTTP technology, properties in rural parts of the UK can experience speeds of up to 1Gbps, up to 33 times faster than the UK average. Once built, the future proof network can keep up with the increasing demand for better, faster broadband to meet the connection needs of a modern, digital society."
Prior to setting up Gigaclear, Hare was founder and CEO of Community Internet Group and ts.com, both privately owned providers of Internet and data services in the UK. He is a Director and Council Member of the Internet Service Providers Association (ISPA) and has also been involved in numerous network, wireless, data and telephony businesses such as Vodafone, Millicom, Microtel (Orange UK) and Liberty Communications.
When working for the Kinnevik Group in the 1990s he persuaded the UK Government to allocate 168Mhz of spectrum for fixed wireless access for Liberty Communications, a triumph that Hare rates as one of his biggest achievements to date. Looking ahead, he expects Gigaclear to become the largest rural FTTP network operator in the UK.
"We'll get there by doing more of what we are already doing, but better, cheaper and faster," stated Hare. "From a commercial perspective, there are over one and a half million homes and businesses in Britain that could benefit from our services and we want to reach those people as quickly as possible. In 2016, Gigaclear plans to build its network to at least 40,000 additional properties, so there's plenty of opportunity for further growth."
In 2015, Gigaclear had a headcount of 63 and the firm's turnover was £1.4 million with a gross profit of £0.6m. The company successfully reached its target of delivering pure fibre broadband to 15,000 properties last year. Its network serves individual households, small and medium businesses (including schools, hotels, business parks, factories, farms and offices) and the occasional enterprise.
The venture kicked off in earnest in May 2011 when Gigaclear bought Rutland Telecom and built its first fibre network in Hambleton, a small village with a population of 140 people, opening for service in October of that year. "Once we had demonstrated what was possible Gigaclear was ready for take-off," stated Hare.
To date, Gigaclear has built 60 rural fibre networks and has a strong pipeline with a further 25 in construction. Over 20,000 properties in rural parts of Oxfordshire, Essex, Northamptonshire, Berkshire, Buckinghamshire, Kent, Cambridgeshire, Leicestershire, Hertfordshire and Gloucestershire are live as a result, with 10,000 more already in construction.
Gigaclear has secured significant investment to build its network. Initially this was via 102 private individuals through the Government's Enterprise Investment Scheme, but in 2014 Woodford Investment Management became Gigaclear's first major institutional investor, followed by Prudential Infracapital last year. In January this year, Gigaclear secured an £18 million debt facility from the European Investment Bank (IEB). The loan is the largest one of its kind awarded to a UK company. "We're a capital intensive business so this loan was an important next step in our expansion strategy," commented Hare.
"Moving from a company that has private investors to one with funding from institutional investors has made a big difference to the business. It has accelerated our rate of growth. The strong financial support of our shareholders lets us get on with the job of delivering future-proof broadband without delay. Furthermore, securing BDUK contracts expands our growth opportunities."
Last month Gigaclear announced a £24 million new equity investment that will accelerate the build of its FTTP network. Building on these commercial investments, in 2015 Gigaclear secured contracts to deliver superfast broadband to customers as part of the Government subsidised BDUK programme to bring broadband of at least 24Mbps to 95 per cent of the UK. Gigaclear has won three substantial BDUK contracts in Gloucestershire, Berkshire and Essex.
The company is also developing its wholesale channel with service providers selling through the Fluidata aggregation platform and through direct connections at Telehouse East and Equinix LD4. "The majority of our customers are currently contracted directly with Gigaclear for service," said Hare. "Over the next few years we expect a substantial shift to our wholesale partners."
A recent consultation from the Department of Culture, Media and Sport, National Broadband Scheme: Market Engagement on Procurement Approach, opens up a range of different potential models that can be used to deliver better broadband in the UK, Hare believes. "We are interested in seeing the impact of the plan to give priority to ISPs offering open access networks," he commented. "Combined with breaking down procurement into smaller lots, we expect to see a significant increase in the number of companies bidding for projects to serve the 'final 10 per cent'."
Hare's priority is to 'build, build, build!', and he rates the steady increase in demand for reliable, high quality bandwidth as Gigaclear's biggest opportunity. But his greatest challenge is acceleration. "To build more ultrafast FTTP networks we need to greatly expand our range of sub-contractors while maintaining the quality of built infrastructure," he said.
Hare has worked in the communications industry since 1984 and still exudes a passion for the transformative power of technology. "Telecoms in particular is an enabler for change and innovation," he enthused. "And Gigaclear is transforming how rural communities connect with the world. We want these communities to be better connected forever, so we are delivering a reliable ultrafast broadband network of the future, designed for the modern digital society. We are trustworthy, secure and here for the long run."•