Network Rail Said to Seek Partners for $1.9 Billion Fiber Plan
Network Rail Said to Seek Partners for $1.9 Billion Fiber Plan
(Bloomberg) --
The company that manages Britain’s railroads is looking for partners to help fund a fiber-optic network that would improve wireless connections for train passengers, people familiar with the matter said.
State-backed Network Rail Ltd. is working with an adviser to help conduct a strategic review and gauge investor interest in the project, according to the people, who asked not to be identified as the information is private.
Patchy mobile signals and low bandwidth are a constant problem for U.K. rail users already exasperated by some of Europe’s least reliable train services. The government is pushing communications providers to improve nationwide broadband speeds.
Network Rail is seeking investors to contribute as much as 1.5 billion pounds ($1.9 billion), which will include a mix of new lines and upgrades of existing infrastructure, one of the people said.
A formal process will take place in the second half of the year, they said, while cautioning that no final decisions have been made and the government may resolve not to bring in new investors.
“Our telecoms network greatly assists the running of the railway and we routinely review its potential to deliver future benefits to passengers and the railway,” the company said in an emailed statement.
Network Rail’s new and upgraded fiber lines will pave the way for fifth-generation wireless services that will offer passengers more powerful data and video and more reliable voice connections. It’s one of several fiber broadband projects aimed at meeting Prime Minister Boris Johnson’s goal of “gigabit-capable” internet speeds across the country by 2025.
Network Rail already has almost 20,000 kilometers (12,400 miles) of fiber-optic cable providing communications for the national railway network, according to its website. It looked at selling its telecom assets four years ago, reportedly holding talks with companies like BT Group Plc and Virgin Media, but shelved the plans.
To contact the reporters on this story: Myriam Balezou in London at mbalezou@bloomberg.net;Thomas Seal in London at tseal@bloomberg.net
To contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, Aaron Kirchfeld, Thomas Pfeiffer
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