Truespeed (TrueSpeed Communications Ltd), a UK fiber-to-the-premises (FTTP) alternative network operator, today announced that it has secured an additional £100m ($135m) of funding from Aviva Investors, the asset management arm of UK insurance company Aviva plc, to expand its UK fiber broadband roll-out. With this second tranche of funding, Aviva Investors grows its total commitment for Truespeed to £175m ($237m), following its initial investment in July 2017.
Truespeed – Aviva Investors Backs Fiber Growth
Truespeed is a fiber infrastructure provider and internet service provider (ISP) offering services to homes and businesses across urban, semi-rural, and rural areas of South West England.
To-date, Truespeed has primarily deployed its fiber-to-the-premises (FTTP) network in the county of Somerset in England, across 200+ rural and city communities. Specifically, within Somerset, the company has built-out fiber in Bath (Somerset’s largest city), Wells, Glastonbury, Shepton Mallet, and Street. For example, in Glastonbury, Shepton Mallet, and Street, Truespeed intends to connect 15k+ premises with its fiber infrastructure.
Connecting Devon and Somerset (CDS) Program
Truespeed is rolling-out fiber broadband networks as part of the Connecting Devon and Somerset (CDS) program, which is backed by UK government funding. By December 2024, Truespeed has committed to pass 15.2k homes and businesses in Bath & North East Somerset, Mendip District, North Somerset, and Sedgemoor District, through the CDS program.
Overall, per a 2021 CDS consultation response, Truespeed notes that it has commercial plans, currently awaiting finance backing (which may now be in-place), for 150k+ fiber-to-the-premises (FTTP) passings in the UK.
Aviva Investors’ incremental £100m investment will enable Truespeed to accelerate the roll-out of its fiber network, which is capable of supporting speeds of 1+ gigabit per second. To this end, Truespeed notes that, over the past 12 months, the company has doubled the size of its network.
Truespeed offers customers fiber broadband packages at speeds of 80 megabits per second (Mbps), 150 Mbps, 350 Mbps, 500 Mbps, and 900 Mbps.
Truespeed is led by James Lowther as CEO, who was only recently appointed to the position in December 2021. Previously, Lowther was Group Chief Commercial Officer at mobile company Lebara. Prior to this role, he was Chief Marketing Officer at Gigaclear.
For the year ended December 31, 2020, Truespeed generated revenue of £3.7m ($5.0m USD) and an operating loss of -£7.1m (-$9.7m USD). Additionally, as of December 31, 2020, Truespeed had tangible fixed assets, at cost (i.e., pre-depreciation), of £34.1m ($46.5m USD), which primarily consisted of network infrastructure and assets under construction.