Vodafone has struck a £ 500m deal to bring next-generation gigabit speed broadband to a dozen UK cities, enabling consumers to download CT scanners seconds.
Vodafone has struck a deal with CityFibre, the publicly-listed company, to build fiber optic lines to 1m homes by 2025, covering 20% of the UK broadband market.
While some consumers and businesses need gigabit speeds now, up to 1000Mb, it is likely to be the norm in coming years. It would be 50 times faster than standard UK broadband and three times quicker than the fastest option currently available from BT.
back-end data shifting muscle for next generation 5G mobile networks and the internet of things - from fully automated homes, driverless cars and "smart" manufacturing
The cities where as far as Peterborough, Milton Keynes, Leeds and Edinburgh is where CityFibre has already been focusing. Construction is due to start next year with 2018.
The government has referred to full-fiber network as the "gold standard" internet infrastructure.
Ofcom points out that the boom in streaming and downloading video, fuelled by services such as Netflix, Amazon and YouTube, has seen home broadband data usage grow at a rate of 36% per year.
"Nick Jeffrey, Vodafone UK chief executive. "The UK has fallen far behind the rest of the world, trapped by the limited choice available on [existing] networks. Only with gigabit fiber will the UK be able to deliver 5G services. "
Jeffrey cited examples of the benefits of high-speed internet: a two gigabyte CT scan sent between hospitals could be done in 40 seconds, compared with the average 14 minutes now. A 5 gigabyte virtual reality game will take 1.7 minutes to download, compared to 34 minutes now. And a 4K movie will be downloaded in 33 minutes instead of 11 hours it takes now.
The move will see Vodafone take on BT's OpenSach, which runs the UK's broadband infrastructure that rivals such as Sky and TalkTalk, and Virgin Media, which runs its own network.
Vodafone will have exclusive rights to market the new networks during construction phase, guaranteeing to take on 20% of customers, with CityFibre eventually looking to allow rivals to sell packages to consumers using its network.
"With this commitment from Greg Mesch, chief executive of CityFibre. "This is a major step forward in delivering the gigabit Britain."
Shares in CityFibre, which in July raised £ 200m to fund building fibre networks, soared more than 25% following the announcement of the deal.
If Vodafone's deal with CityFibre is extended to cover 5m households it will achieve 50% of the government's target of full fiber to 10m homes and businesses. The partners said they would know in a "year or two" which is the first 12 will be targeted next.
Openreach has been in talks with operators including Vodafone and Sky to deliver on the government's call for more full fiber. Openreach has said it will cost up to £ 600m and costs will rises for consumers.
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