Bigblu subsidiary wins Lincolnshire broadband tender

(Sharecast News) - Bigblu Broadband announced on Wednesday that its subsidiary Quickline Communications has won a competitive tender to provide fixed wireless access to premises across Lincolnshire that are unable to access fast and reliable internet connectivity.
The AIM-traded firm explained that fixed wireless access provides a quicker and lower-cost solution than pure fibre, and is supported by government grants.

On behalf of the Lincolnshire Authority, Quickline said it would extend its fibre-backed, fixed wireless network to a further 8,000 premises in rural areas to connect to superfast and, in a number of cases, ultrafast broadband services.

The contract would provide for a total network investment of up to £8.1m, leading to "significantly faster" broadband speeds in the more isolated areas of Lincolnshire.

The programme would receive an initial subsidy of up to £4.6m, with £3.1m of funding confirmed from the Lincolnshire Local Authority and £1.5m confirmed from the European Regional Development Fund.

A further £1.5m of subsidy was available subject to certain conditions, with Quickline also committing £2.0m of investment to support the roll-out.

It was the second tender won by Quickline in September, following the announcement of a £9.1m contract with a £7.6m subsidy awarded by the Combined Authority of West Yorkshire.

Both contracts formed part of Building Digital UK's £1.7bn Superfast Broadband Programme that is targeting coverage for over 96% of UK premises until 2026.

Bigblu said Quickline's expanded network would be able to provide superfast and often ultrafast services to premises previously unable to access fast and reliable internet connectivity.

It therefore expected to see strong take-up of broadband services, further increasing its addressable market and customer base.

Quickline was also expecting to deliver at least its targeted return on capital of around 15% over the life of the contract.

"It's extremely pleasing to have further extended Quickline's footprint," said Quickline founder and chief executive officer Steve Jagger.

"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, added that the company was "delighted" by Quickline winning a second tender in rapid 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."

At 1210 BST, shares in Bigblu Broadband were up 1.37% at 88.7p.