Ogi – Wales’s biggest alternative telecoms company – has reached a deal on a new £45million package from Wales’s largest regional partnership, the Cardiff Capital Region (CCR), alongside additional equity investment from its principal shareholder, Infracapital, to support the next stage in the company’s growth.
The new funding package will see Ogi extend its reach in the 10 local authority areas that make up the CCR (Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and the Vale of Glamorgan) where it already has an established presence.
An important region economically, the CCR also includes Ogi’s multimillion-pound high-capacity network spanning the M4 from England and along the south Wales trunk road route. Built to service the growing need for cloud computing, AI and data storage, and serving the fast-growing fintech and creative sectors, the new diverse route also increases Wales’s appeal to datacentre operators, mobile carriers and hyperscalers.
Securing it’s first round of investment from Infracapital, the infrastructure equity investment arm of M&G plc, Ogi propelled onto the scene in 2021, bringing full fibre connectivity, telephony, and business IT services to post-industrial towns and villages across Wales, as well boosting the alternative options available in major cities and new and emerging commercial zones too.
The challenger to the incumbent operators has since built a new fibre to the premise [FTTP] network to over 100,000 premises in south Wales, with 1 in 5 of those already signed up as a customer.
With a distinctive Welsh brand, Ogi roots itself in the communities it serves, with a hyperlocal marketing approach backed by an award-winning community engagement programme that’s given thousands back to local groups and charities.
Each ‘full fibre’ community benefits from a capital injection of around £5million, with the long-term economic impact estimated to be worth almost £5 for every £1 invested. The Ogi network uses more sustainable technology compared to traditional copper connections too, helping more people to work from home, reducing the need to commute, and in turn reducing carbon emissions across the region.
Announcing the deal, Ogi’s Chief Executive Officer, Ben Allwright, said: “Right from the start, our ambition has been to become a leading Welsh telecoms company, and the last few years have certainly laid strong foundations for that goal.
“With key strategic sites like Aberthaw to the south and the heads of the valleys to the north, there’s massive potential across the capital region – and partnering with the CCR at such an exciting time in their own development is the next logical step for Ogi’s growth in southeast Wales.
“Together with further investment from our principal shareholder, Infracapital, this is yet another endorsement of our mission to make sure no Welsh community gets left behind.
”I’m immensely proud of the work the team at Ogi are doing across Wales, and this news – another leap forward in Ogi’s development – is testament to their commitment to making sure Wales keeps up to speed with the rest of the UK, and the world.”
Cardiff Capital Region’s Director, Kellie Beirne, added: “Ogi has taken regeneration to a new level with its initial investment – connecting communities to new possibilities right across the Cardiff Capital Region and beyond.
Ogi was advised on the transaction by Deloitte and CMS Law acted as legal counsel for Ogi and Infracapital.
Previously announced programmes in communities outside of the 10 local authority areas that make up the Cardiff Capital Region – including Pembrokeshire – will continue as planned.