TalkTalk Sends Ethernet Contracts to CityFibre in Shift From BT

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TalkTalk Telecom Group has agreed to use fiber startup CityFibre Ltd. for part of its wholesale Internet business contracts, which could divert as much as £100 million ($125 million) annually away from its longtime partner, BT Group Plc.

CityFibre is part of a burgeoning industry of alternative networks, or “alt nets,” which have invested billions of pounds building fiber lines across the UK, competing with Openreach, BT’s infrastructure division. TalkTalk will rent access on CityFibre’s network to then resell the private connections to business customers.