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Deutsche Bank has suggested Vodafone and CityFibre's commitment to boosting ultrafast broadband access could prove very rewarding for both firms.

The two companies last week announced a long-term strategic partnership that will lead to up to five million premises having access to gigabit-capable broadband by 2025.

The rollout is due to begin in early 2018, with the first phase seeing the technology being deployed to one million homes and businesses over three years.

Vodafone and CityFibre will then have the option of extending the commercial terms of their agreement to reach a further four million premises by 2025.

According to Deutsche Bank, large-scale fibre deployments are "by nature a lengthy process".

However, it said "the equivalent of today’s announcement, in telco time-terms, is that Vodafone is lighting a firework and preparing to enjoy the spectacle that unfolds - one which will reward on multiple fronts".

"BT’s acquisition of EE is seeing the UK market move towards convergence products which have proven popular (and deflationary) in other markets," Deutsche observed.

Liberum Capital, CityFibre's joint broker, added that the move "clearly positions" CityFibre as the UK's leading provider for full fibre infrastructure for home connectivity, This is Money reports.

"Phase one of the roll-out is expected to be largely financed with available funds and a new debt package to be secured next year,’ it stated.

The broker added that with Vodafone and CityFibre "clearly interested in pushing onwards towards five million homes fairly soon, the total revenues from this partnership could be significantly higher during this period".

Vodafone and CityFibre believe fibre-to-the-premises networks provide extremely fast and reliable broadband services, as they use fibre-optic cables for each stage of the connection

The two companies said this means gigabit-capable technology is "vastly superior" to outdated networks that rely on ageing copper telephone lines, and can therefore transform consumers' everyday lives and enhance business productivity.

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