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UK properties with "full fiber" internet connections.
The telecoms firm is partnering with broadband network specialist CityFibre to achieve the goal by 2025.
Vodafone said the initiative would deliver a "superior product at a lower cost" than relying on Openreach's infrastructure, as it does at present.
Openreach, which currently supplies broadband across the UK, said (19459009)
Higher demand
"Full fiber" refers to the fact that fiber-optics cables run directly to properties, rather than relying on copper cables to connect the buildings to roadside cabinets.
Vodafone says [194590010] Vodafone says customers can ex pect to receive gigabit speeds - 1,000 megabits per second or higher - when it begins to roll out the service next year.
Under the deal, CityFibre will own and operate the new network and Vodafone will get exclusive rights to it for an unspecified period of time.
Construction of the first phase of the project is due to begin before July, and will initially aim to connect one million properties,
In addition, Vodafone will use the network to support radio base stations it intends to deploy ahead of the launch of a 5G mobile data service.
"Vodafone has made investment in fibre build-out a massive priority in the last two to three years-especially in Spain and Italy, "commented Mark Newman, chief analyst at the ConnectivityX research firm.
" The amount of data the mobile networks are carrying is going up by 50% a year - and as you build more and more mobile sites to cope with the demand in tra ffic ... you need more fiber to carry that signal back from the base stations into the network. "
Privately unhappy
Openreach is already pursuing a plan to connect fiber to 10 million UK homes and business by the mid-2020s.
It said it hoped Vodafone's plan would "complement" its own effort.
"As we've said consistently - investing in more fibre-to-the -premises technology across the UK will need commitment from the whole industry, "said a spokesman.
But Mr. Newman, said the division was likely to be privately unhappy about the development.
" Openreach is a pretty good business for BT, "he explained.
" Any operator that chooses to install their own fiber or go to a third party is going to mean one less customer. "
