TIDMBBB
RNS Number : 0162B
Bigblu Broadband PLC
05 October 2020
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon the
publication of this announcement, the inside information is now
considered to be in the public domain for the purposes of MAR.
Bigblu Broadband plc
('BBB' or the 'Company' or the 'Group')
Quickline Wins Third Broadband Grant
BDUK/DCMS Funding Secured Now Totals Over GBP15m, Targeting
100,000 Premises
Exclusive contract to deliver faster broadband speeds to 1,500
premises across North Lincolnshire
Bigblu Broadband plc (AIM: BBB.L), a leading provider of
alternative super-fast broadband services, announces that its
subsidiary Quickline Communications Limited ("Quickline") has won a
further competitive tender to provide significantly improved
broadband speeds to premises across North Lincolnshire that are
unable to access fast and reliable internet connectivity.
On behalf of the North Lincolnshire Local Authority , Quickline
will extend its network using both fixed wireless and full fibre
technologies to a further 1,500 premises in rural areas to connect
to superfast*, ultrafast** and in some cases gigabit speed
broadband services. The contract provides for a total network
investment of GBP1.8m, leading to significantly faster broadband
speeds in the more isolated areas of North Lincolnshire within two
years.
The programme will receive a subsidy of up to GBP1.4m, with
GBP1.0m from the European Agricultural Fund for Rural Development
(EAFRD) and GBP0.4m of funding from the North Lincolnshire Local
Authority. Quickline is committing GBP0.4m of network investment to
support the roll-out.
Given the limited connectivity currently available in the
contracted areas, Quickline expects to see strong take-up of
broadband services, further increasing its addressable market and
customer base. Quickline also expects to deliver at least its
targeted return on capital of c.15% over the life of the
contract.
Quickline is focussed on delivering improved broadband
connectivity in the rural areas of Northern England, where a
significant digital divide remains and hundreds of thousands of
premises are in need of increased broadband speeds. Quickline's
heritage is fixed wireless but its network includes increasing
amounts of fibre connectivity. Its aim is to be the leading UK
dedicated rural broadband infrastructure provider, delivering
innovative, flexible and hybrid solutions that can address the
millions of premises unlikely to be served commercially by full
fibre networks for many years to come.
Three BDUK contacts secured, 5G DCMS Grant, Rural Gigabit
Vouchers to target 100,000 premises
This is the third tender won by Quickline in quick succession
under the BDUK Superfast Programme and follows a long period of
engagement with both local authorities and BDUK regarding how best
to improve connectivity in deep rural communities. Today's
announcement follows a GBP9.1m contract, GBP7.6m subsidy, awarded
by the Combined Authority of West Yorkshire and a contract for up
to GBP8.1m of network investment with up to GBP6.1m of subsidy in
Lincolnshire. In addition, Quickline was selected by the DCMS in
February to lead a GBP6m 5G project to boost rural connectivity in
North Yorkshire.
The three contracts represent an opportunity to provide
significantly improved network connectivity to over 16,000 premises
within Quickline's current footprint using both fixed wireless and
full fibre technologies. Quickline will make a combined network
investment of up to GBP19m to pass these premises with up to
GBP15.1m funded via subsidies and GBP4.1m from Quickline's own
resources. Quickline will also invest further capital in scaling up
the organisation, sales and marketing and connecting customers.
The subsidies received are deferred as capital grants and
recognised as other income over a four year period. This will boost
Quickline's reported revenue and EBITDA as its customers, revenues
and profits develop.
Finally, Quickline is already an approved supplier of Rural
Gigabit Voucher which provides for up to GBP1,500 per residential
premise and GBP3,500 per business premise for new gigabit-capable
connections in rural areas and is quickly ramping up infrastructure
build via this programme. Through a combination of its current
footprint, the three tenders and Rural Gigabit Vouchers, Quickline
sees scope to target 100,000 premises.
Significant Government Support Ongoing
BDUK's GBP1.7bn Superfast Broadband Programme is being phased
out although new contracts can be signed before the end of December
2020 and supported through to 2026. Going forward, BDUK is adopting
an "Outside-In" approach funded by the Chancellor's GBP5bn
commitment to fund gigabit capable deployment in the hardest to
reach 20% of the UK.
The "Outside-In" approach has two main elements: a Rural Gigabit
Voucher Scheme and a Dymamic Purchasing System. Quickline is
already an approved supplier and beneficiary of the voucher Scheme
which provides up to GBP1,500 per residential premise and GBP3,500
per business premise for new gigabit-capable connections in rural
areas. Quickline will continue to build new network where these
vouchers are available.
The Dynamic Purchasing System (DPS) is expected to be introduced
in April 2021 and allows infrastructure providers to bid for
funding to roll-out gigabit-capable networks to underserved
regions. Quickline is part of the industry consultation into this
scheme which has yet to be finalised. However, it is understood
that the hardest to reach areas will be divided into lots with an
average size of around 3,000 premises and an average subsidy of
around GBP1,000 per premise passed. Quickline is already registered
on the scheme and will consider lots as they become available.
Finally, we recognise the importance of gigabit capable networks
and the role that full fibre plays in delivering them. However it
is worth noting that in many rural areas of the UK, full fibre will
remain too expensive and challenging to deploy even with government
support. Quickline's 5G DCMS backed project in North Yorkshire is
helping increase understanding as to how 5G enabled fixed wireless
could provide a gigabit solution that is both much faster and lower
cost to deploy.
*Superfast defined as broadband speeds in excess of 30Mbps
** Ultrafast defined as broadband speeds in excess of
100Mbps
Steve Jagger, CEO of Quickline commented: "The variety of
solutions we provide means that we are well placed to build on the
recent tender wins. We continue to work closely with the Government
and Local Authorities and are delighted to be able to further grow
our reach through this latest win. We believe that there is
significant scope for us to help close the digital divide and we
look forward to supporting further initiatives in due course."
Andrew Walwyn, Chief Executive Officer of Bigblu Broadband,
commented : "We are delighted by the continued progress at
Quickline as it takes advantage of the significant growth
opportunity. Its strong technology portfolio means that it is
extremely well placed to support the Government's ambition of
nationwide gigabit coverage by 2025. With the combination of
Government tenders, M&A and organic investment underpinning its
strategy we remain excited by the expected pace of growth."
For further information:
Bigblu Broadband Group PLC www.bbb-plc.com
Andrew Walwyn, Chief Executive Officer Via Walbrook PR
Frank Waters, Chief Financial Officer
Dom Del Mar, Corporate Development
finnCap (Nomad and Broker) Tel: +44 (0)20 7220 0500
Marc Milmo / Simon Hicks / Charlie Beeson
(Corporate Finance)
Tim Redfern / Richard Chambers / Manasa
Patil
(ECM)
Walbrook PR (PR / IR advisers) Tel: +44 (0)20 7933 8780
or
Nick Rome/Tom Cooper/Nicholas Johnson BigbluBroadband@walbrookpr.com
About Bigblu Broadband plc
Bigblu Broadband plc (AIM: BBB), is a leading provider of
alternative super-fast and ultra-fast broadband solutions
throughout Europe and Australia. BBB delivers a portfolio of
super-fast wireless broadband products for consumers and businesses
unserved or underserved by fibre.
High levels of recurring revenue, increasing economies of scale
and Government stimulation of the alternative broadband market in
many countries provide a solid foundation for significant organic
growth as demand for alternative super-fast broadband services
increases around the world.
In July 2020, BBB announced the conditional sale of its European
Satellite business to Eutelsat and whilst the completion has yet to
be concluded this offers an excellent return for its shareholders
whilst providing a key asset for Eutelsat to solidify its position
in the European Satellite market. With the remaining businesses,
BBB is extremely well positioned to continue growing as it targets
customers that are trapped in the 'digital divide' with limited
fibre broadband options.
BBB provides customers ongoing services including hardware
supply, installation, pre and post-sale support billings and
collections, whilst offering appropriate tariffs depending on the
requirements of each end user.
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