Keith Harris, a key figure in the broadband industry talks to Proactive’s Thomas Warner about the journey of Global Connectivity and its mission to bring reliable broadband services to rural communities in the UK
Harris also talks through the recent merger with .assets owned by Macquarie and another infrastructure fund, which has positioned the resulting entity Voneus as the UK's largest rural broadband player and plans to invest £250 million and reach 350,000 homes within the next year.
Global Connectivity's origins
Proactive: Can you tell us about the origins of Global Connectivity and its mission to bridge the digital divide in rural areas?
Harris: Global Connectivity was founded three years ago with a primary mission to provide fast and reliable broadband to rural communities in Shropshire, Staffordshire, and East Wales.
This endeavour was spurred by the UK government's introduction of the gigabit system, which encouraged companies like ours to address the digital divide between metropolitan and rural areas.
It's worth noting that 80% of the UK is designated as rural, housing 20% of the population, which translates to 12 million people.
We've been focusing on this underdeveloped market while bigger firms concentrate on urban areas.
Tiger partnership
Proactive: Could you share details about your partnership with Tiger and the recent merger with Macquarie to become Voneus?
Harris: Certainly. In the course of our journey, we sought an infrastructure partner called Tiger from the United States.
Tiger acquired 85% of Global Connectivity for an investment of £75 million, which they paid in cash, while we retained 15% ownership.
We are proud to be a public company, and we may be the only one in this niche accessible to investors.
Recently, we announced a merger between Tiger and our interests with Macquarie and another infrastructure fund, creating Voneus.
Voneus aims to become the largest rural broadband internet player in the UK. We plan to invest £250 million and connect 350,000 homes within the next year.
Fibre focus
Proactive: How does your commitment to providing fibre directly into homes improve broadband connectivity in rural areas?
Harris: Our approach is unique and focused on providing fibre directly into homes, not just to the threshold.
This results in significantly improved broadband reception. It's faster, offers broader coverage, and provides a deeper and more reliable connection.
We believe this approach is crucial to making sure rural communities have access to the same high-quality broadband services as urban areas.
What's the future looking like
Proactive: With the recent merger and the evolution of Voneus, what's your vision for the future of the company and the industry?
Harris: Consolidation has always been on our radar. Having worked in investment banking for many years, I understand the importance of growth and consolidation within industries.
The broadband sector is ripe for consolidation, and our partnership with strategic thinkers and aggressive funders positions us to be a significant player in this process.
We anticipate that consolidation within the industry will likely occur in early 2025.
In summary, as rural communities continue to benefit from improved connectivity, the future of broadband in these areas looks promising.