UK altnet market 'entering its most dangerous phase yet' | Computer Weekly

"Even though the footprint of the UK's alternative broadband providers (altnets) has doubled in less than two years, the sector is now moving from expansion to survival, with several operators facing commercial pressure that could trigger an expected consolidation wave, a study from Intelligens Consulting has found. The State of the UK fibre market 2025 report revealed that the UK broadband market is on the brink of its biggest shakeout yet, as the industry shifts from rapid expansion to targeted, commercially grounded fibre investment."

"Altnets now account for around 57% of all UK fibre-to-the-premises (FTTP) deployments, according to the study, with three firms - CityFibre, Netomnia and nexfibre - anchoring the independent fibre sector and driving the majority of new coverage. In addition, several operators have moved significantly up or down the rankings over the past year, with Lightspeed, F&W Networks and G.Network dropping out of the top 10, replaced by nexfibre, FullFibre/Zzoomm, Trooli and Freedom Fibre (including VXFibre)."

"Yet even with the rapid growth in altnet footprint and sector investment surging to £21.3bn, defying predictions of a slowdown, the study flagged several signs that the roll-out momentum is slowing, with take-up rates varying from 4% to almost 50%. This sparked concerns over the long-term viability of several operators, according to Intelligens Consulting. The study found that the UK now sits at an average 2.44 fibre networks per household, raising fresh questions about overbuild, competition and sustainability."

Altnet footprint doubled to around 16 million premises by late 2025, up from just over 8.6 million in 2024. Altnets account for roughly 57% of all FTTP deployments, with CityFibre, Netomnia and nexfibre driving much of the new coverage. Sector investment rose to about £21.3bn despite rising costs and slower build rates. Take-up rates vary widely, from around 4% to almost 50%, creating uneven commercial viability across operators. The market averages 2.44 fibre networks per household, increasing concerns about overbuild, competition and long-term sustainability, and prompting expectations of consolidation.

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