Projects

Airband

Digital

Fibre

Airband is a fibre to the premise (‘FTTP’) and fixed wireless access (‘FWA’) network operator rolling out full-fibre broadband networks to rural and hard-to-reach areas in the West of England.

Sector

Digital

Fibre

Location

West of England, UK

Status

Divested

Equity ownership

100% divested in 07/2023

Financial close

July 2018

Term length

5 years

About

Founded in 2009, Airband is a leading alternative network provider focused on rural and hard-to-reach areas in the West of England.

Homes and business with access to up to 1Gbps

0 k

at divestment

Targeted Homes and business over the next few years

0 k

at divestment

Originally a fixed wireless business, Airband identified the need for rural fibre and is now a scaled FTTP altnet, with a proven track record of deploying FTTP networks in hard-to-reach rural areas. Airband specifically targets areas with a high level of government support through BDUK contracts for coverage and vouchers awarded for connections, and has a proven expertise in navigating tender offers, with a c.70% win rate of BDUK subsidies at the point of divestment.

The platform, at divestment, had passed c.215k FTTP premises (290k when including wireless premises) and targetted building c.400k FTTP premises over the following couple of years in addition to the c.76k FWA premises that the company continues to commercialise.

Visit the website

Win rate of Government BDUK subsidies

0 %

Why we invested

Strong market fundamentals: Significant growth in data usage driving strong growth in demand for resilient digital infrastructure, within a stable and predictable regulatory regime
Barriers to entry: Provider of critical fibre broadband infrastructure in underserved rural areas, creating natural monopoly position, offering connectivity to over 290k premises, of which c.215k FTTP
Public sector linkage: Airband focuses on rural roll out of fibre and is experienced in winning subsidised contracts, having a strong track record of being awarded Building Digital UK contract tenders
Value creation potential: Continued value from Airband’s well-maintained fixed wireless access infrastructure throughout FTTP network roll-out

Sustainable Development Goals (SDGs)

2030 Agenda for Sustainable Development adopted by UN Member States in 2015

SDGs supported:

SDG contribution

Outcomes

Strategy: During Amber’s stewardship, Airband re-positioned towards FTTP and tooled up to bid efficiently in new tenders, growing the company’s fibre footprint to outpace its legacy fixed wireless access network
Leadership: Identified and secured new company leadership, leading to the appointment of a new Chairman, Finance Director & Operations Director
Operations: Assisted in the development of enhanced operations and governance at Airband Financing: Successfully structuring the further capital needs of the business to support continued growth, initiating a partial divestment to Aberdeen Standard Investments in November 2020, followed by a £100m debt facility
Divestment: Successfully fully divested remaining NDIF stake in Airband, with the sale price representing a 12% holding period IRR and in excess of a 1.5x multiple on the capital invested.

Airband

About

Why we invested

Sustainable Development Goals (SDGs)

Outcomes

Community Fibre

NextGenAccess

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