Bigblu Broadband PLC Quickline Secures Broadband Grant for Up To GBP6.1m (7896Z)
23 September 2020 - 4:00PM
UK Regulatory
TIDMBBB
RNS Number : 7896Z
Bigblu Broadband PLC
23 September 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 Secures Broadband Grant for Up To GBP6.1m
Exclusive contract to deliver faster broadband speeds to 8,000
premises across Lincolnshire within two years
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
competitive tender to provide fixed wireless access ("FWA") to
premises across Lincolnshire that are unable to access fast and
reliable internet connectivity. FWA provides a quicker and lower
cost solution than pure fibre and is supported by Government
grants.
On behalf of the Lincolnshire Authority, Quickline will extend
its fibre-backed, fixed wireless network to a further 8,000
premises in rural areas to connect to superfast* and, in many
cases, ultrafast** broadband services. The contract provides for a
total network investment of up to GBP8.1m, leading to significantly
faster broadband speeds in the more isolated areas of
Lincolnshire.
The programme will receive an initial subsidy of up to GBP4.6m,
with GBP3.1m of funding confirmed from the Lincolnshire Local
Authority and GBP1.5m confirmed from the European Regional
Development Fund. A further GBP1.5m of subsidy is available subject
to certain conditions. Quickline is also committing GBP2.0m of
investment to support the roll-out.
This is the second tender won by Quickline this month following
the earlier announcement of a GBP9.1m contract, GBP7.6m subsidy,
awarded by the Combined Authority of West Yorkshire. Both contracts
form part of BDUK's GBP1.7bn Superfast Broadband Programme that is
targeting coverage for over 96% of UK premises and is committed to
run until 2026.
Quickline's expanded network will be able to provide superfast
and often ultrafast services to premises previously unable to
access fast and reliable internet connectivity. It therefore
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.
*Superfast defined as broadband speeds in excess of 30Mbps
** Ultrafast defined as broadband speeds in excess of
100Mbps
Steve Jagger, Chief Executive Officer and Founder of Quickline
commented: "It's extremely pleasing to have further extended
Quickline's footprint. Our ability to deliver broadband speeds in
excess of 100Mbps combined with the growing reach of the business
make us an attractive partner to local authorities. We believe that
our solutions and capabilities put us in a strong position to build
on these recent wins."
Andrew Walwyn, Chief Executive Officer of Bigblu broadband,
commented: "We are delighted by the fact that Quickline has won a
second tender in such quick succession. Its management team has
been working hard on a number of fronts and it's extremely pleasing
to see the fruits of their labour. It is becoming abundantly clear
that there is significant opportunity for Quickline to grow at
pace, ensuring that it remains on track to reach 30,000
subscribers. The scalability of the business and potential return
on capital speak for themselves - highlighting the strength of the
model and the significant value opportunity."
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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