UK broadband supplier TalkTalk has today announced the sale of its fibre network infrastructure to Goldman Sachs backed CityFibre.

The sale is underpinned by a long-term wholesale agreement between the two for residential and business products in the areas where CityFibre builds, while also allowing TalkTalk the flexibility to partner with other network providers

As a result of the sale, TalkTalk will be able to reduce its debt and enable CityFibre to increase its roll out target from 5 million premises in the UK to 8 million.

The deal also cements CityFibre’s position as the UK’s third national digital infrastructure platform behind Virgin and BT.

It represents the latest investment in the country’s full-fibre infrastructure, which currently lags behind other developed countries in terms of coverage and access.

A recent survey on comparison website Cable found that the UK ranks 81st in the world for its value of home broadband packages due to slow speeds.

Originally, the sale was set to take place late last November but was put on hold due to Labour’s pledge to national broadband provision – a move that would have upended the market. However, a decisive win by the Conservative party brought the deal back to the table.

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TalkTalk chief executive Tristia Harrison said the deal was good for TalkTalk, and for Britain and its full-fibre ambition.

“The sale of FibreNation to CityFibre, in combination with a competitive wholesale agreement, enables us to continue our strategy to accelerate TalkTalk’s fiber growth for our residential and business customers, thereby delivering a superior customer experience at an affordable price,” she said.

CityFibre has also announced it is restructuring its deal with Vodafone to allow other internet providers access the network sooner than planned.

The deal is scheduled to be completed in March and is subject to shareholder approval.