Troubled UK FTTP ISP People’s Fibre Acquired by Swish Fibre UPDATE

Alternative UK broadband ISP Swish Fibre, which is being backed by Fern Trading in its plan to build a new 10Gbps capable Fibre-to-the-Premises (FTTP network across 250,000 premises in the Home Counties (here), has stepped in to rescue troubled provider People’s Fibre after they recently fell into administration.

As we reported last month in our extended summary (here), Essex-based People’s Fibre appears to have struggled in an aggressively competitive market and set itself some very optimistic targets for early revenue, which were not met. The company then fell into administration following a related “breakdown in the relationship” between the company’s director and investors.

According to the administrator’s report, People’s Fibre’s relatively new network had passed a total of 5,293 premises and connected just 150 of those to their service (i.e. a rapid build will almost always suppress the take-up figure, which takes a long time to grow organically). However, network coverage was expected to grow by another 1,500 premises during the administration process.

At the time of our last report we expected that consolidation – largely based upon the asset value of what had already been built – seemed likely to be the most plausible outcome of the administration process, and so it has come to pass. Unlike People’s Fibre, Swish Fibre has significant financial backing (c.£225m) from one of the fibre market’s biggest investors – Fern Trading, which has taken the decision to rescue the ailing provider for an undisclosed sum.

Brice Yharrassey, CEO of Swish Fibre, said:

“I am delighted to welcome the staff and customers of People’s Fibre to the Swish family. We have big plans to expand on the great work that the team have achieved in Essex, and very much look forward to closely supporting the business with immediate effect.”

Leo Chong, CEO of People’s Fibre, said:

“We see Swish as a great fit with the People’s Fibre team and applaud the acquisition. My team and I look forward to growing the business together with Swish in the New Year.”

Customers of People’s Fibre were informed about the decision on Christmas Eve of all days, which probably came as somewhat of a surprise, at least it would be for those who don’t read ISPreview.co.uk. Swish has since informed us that they’ve already met the People’s Fibre team, informed the customer base of the acquisition and are putting in place some “exciting plans” for 2022. But no solid details have been revealed, yet.

In other news, Swish connected their first customers in Chinnor (Oxfordshire) last week too, which is their second location in Oxfordshire after recently welcoming customers onto the network in Thame. Swish have also connected customers in Marlow, Farnham, Princes Risborough, Bourne End, Beaconsfield, Haslemere, Godalming, Gerrards Cross, Chinnor and Thame. Meanwhile, building continues in Ascot, Bagshot, Flackwell Heath, Hazlemere, Penn and Sunningdale, with more towns set to receive the service soon.

UPDATE 12th April 2022

The final administrator’s report reveals that Swish paid a total cash consideration of £2.8m for the provider.