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Netomnia Secures £147.5m Boost to Fuel UK Full Fibre Rollout

Wednesday, Mar 6th, 2024 (3:12 pm) - Score 3,320
Netomnia-Engineer-Behind-Barriers

Broadband operator Netomnia, which is supported by ISP YouFibre and had been aiming to cover 1 million UK premises with their 10Gbps capable Fibre-to-the-Premises (FTTP) network by early 2024, has announced that they’ve covered 850,000 premises (up from 730k in Nov 2023) and raised a further £147.5m to fuel their rollout.

The group, which now serves around 80,000 active customers on their network (up from 65k on 13th Dec 2023), has previously been supported by funding of £648m from DigitalBridge and other investors. But today’s raise of a further £147.5m in its accordion facility will essentially increase their committed debt financing to £377.5m and adds three new lenders: Barclays, Alpha Bank and Nord/LB, with support from all incumbent lenders.

NOTE: Supported by Advencap, DigitalBridge and Soho Square, Netomnia and YouFibre have now raised £795.5m in just three years.

The additional funding will enable the operator to continue their current deployment and, crucially, comes at a time when many other investors in this sector are tightening the reins on funding against a backdrop of rising build costs, high interest rates and concerns about take-up. Suffice to say, investors seem to be giving Netomnia a vote of confidence.

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The latest development comes shortly after network technology firm ADTRAN confirmed that Netomnia had also become the “first customer” of their new SDX 6400 50G PON OLT platform (here), which is bleeding edge technology that supports the latest 50Gbps Passive Optical Network (PON) standard.

Jeremy Chelot, CEO at Netomnia and YouFibre, says:

“We are very pleased to welcome three new lenders to Netomnia and YouFibre with support from our existing lenders. This backing demonstrates the strength of Netomnia’s deployment plans in the market and we’re delighted they have chosen to support the continued acceleration of our businesses.

Our success is a testament to the dedication and hard work of our team, as well as the unwavering support of our investors and partners. With this latest round of funding, we are well-positioned to accelerate our network deployment efforts and continue delivering best-in-class internet services and customer experience.”

Customers of YouFibre typically pay from £21.99 per month for their 150Mbps package, which rises to just £29.99 for 1Gbps and £99.99 for the dizzy heights of 7-8Gbps on a 24-month term.

Netomnia and YouFibre were advised by Allen & Overy LLP. The capital raise was led by DigitalBridge.

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Mark-Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook and .
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Comments
30 Responses
  1. Avatar photo Sam says:

    No way!! All the experts and scientists and doctors at the ispreview comment section said the altnets are dead

    1. Avatar photo Peter G says:

      Well, some are heading that way lol!

    2. Avatar photo I love Starlink says:

      But this is Breaking News apparently – remember that LOL

    3. Avatar photo Ivor says:

      if nothing else it means more assets for CF/VM to snap up at pennies on the pound later.

    4. Avatar photo Bob says:

      How long before a big altnet goes bus. Anyone want to buy a water company? Strong rumours Thames Water is going bust

    5. Avatar photo RightSaidFred says:

      Throwing new money after bad money isn’t a sign of a prospering company.

      They’re at 10% take-up, much like all the other altnets.

      Meanwhile, OR hit 34% of a larger base. Not sure what VMO2 figure is, but I’m confident that it is higher than the altnets too.

      Considering that VMO2 and OR intend full coverage, that leaves only a third of the market for the altnets…and they’re overbuilding eachother.

      Only the ones not overbuilding eachother represent any kind of value.

    6. Avatar photo NE555 says:

      > How long before a big altnet goes bus

      Is there actually such a thing as a big altnet? The closest would be Cityfibre, which at 3m properties ready for service (RFS) represents about 10% UK coverage. The others are minnows.

      https://www.ispreview.co.uk/index.php/2024/02/top-16-full-fibre-broadband-networks-by-estimated-uk-coverage.html

      https://www.ispreview.co.uk/index.php/2023/12/cityfibres-fttp-broadband-network-covers-3-37-million-uk-premises.html

  2. Avatar photo Silvio says:

    Good to see a ISP brand doing well in this cloudy period.
    My best wishes for Netomnia

  3. Avatar photo Notomnia says:

    Hoped this means they deploy their services in the places they’ve lied are ‘live’ on their website

    1. Avatar photo James says:

      They didn’t ‘lie’ A live area is where at least an area is able to get service and they will slowly be rolling out over time

    2. Avatar photo Notomnia says:

      The area is marked as live and services cannot be ordered anywhere in that area. So it’s not live.

    3. Avatar photo anonymous says:

      Sorry, but they did lie in my circumstance. Letter through door saying they were coming and soon be able to have it. Specific targeted marketing on a per road basis. Still waiting whilst other roads have it. Cant see anything particularly difficult about my road and near their chamber.

      Having said that, I do wish them well. They aren’t stuck in the past telling everyone that string is enough for most people and do UK support, and need competition as BT always been hopeless and VM just want to screw everyone with ridiculous pricing.

    4. Avatar photo DMB says:

      James this is not right. Please take a look at Bedford. It has been “live” for over 3 months (4 now pretty much). Please try ANY postcode in Bedford. None can order it. The engineer who came out to our street again last week for some reason told me it’s not even lit up yet.

  4. Avatar photo Nick says:

    Hopefully this might enable them to branch out and tackle streets that require a bit more work that have been left currently.

    So far here their rollout is mainly on homes served by poles.

    1. Avatar photo Jeremy says:

      The ratio is 60/40 so you are right but we do a lot of underground too

    2. Avatar photo XGS says:

      *Raises hand*

      No cherry picker required here!

  5. Avatar photo Ian says:

    9% take up rate, yikes.

    1. Avatar photo Nate says:

      People are trapped in contracts. Look again in a couple years.

    2. Avatar photo Sam says:

      Their coverage literally doubled in a year, it is actually pretty impressive that their sales has also kept up. Jeremy even said to break even the takeup just needs to be on the low teens so numbers look pretty good

    3. Avatar photo Alex A says:

      Netomnia is PIA build and targets cheap-to-build areas. That isn’t a criticism, they’ve done well to get where they are. As such the takeup to payback is low.

      Worth noting that the altnets with low build costs and a strong anchor tenant ISP have done very well (CommunityFibre comes to mind). CityFibre’s microduct build method used in some areas I suspect hasn’t helped them.

    4. Avatar photo PaperThinJim says:

      Or 9% blended take-up already when most of the network is pretty new … So much hate to alt-net take-up, without real understanding of KPIs and timeframes. Their customer base is growing ~300% YoY and well on their way to reach a very decent take-up that will be profitable due to the low cost to build.

  6. Avatar photo Alex A says:

    Congratulations Jeremy! Now when can you send 8gbps my way?

    1. Avatar photo Alex A says:

      Huh, emoji got removed, pretend 🙂 is at the end of that!

    2. Avatar photo Fibre Scriber says:

      Ah! you have to insert an emoji in the middle. nice one.

  7. Avatar photo Yf says:

    Tbf they did me a huge favour. Bought out my old contract for £300. Then signed with them for 2gb/2gb at £49 pcm including fixed ip and no price rise during contract.
    Can’t complain with that

  8. Avatar photo Thepfy says:

    I know several people in different areas, including myself, who have moved to You Fibre and their service is excellent.
    Some of those people have moved from Virgin Media.

  9. Avatar photo The_builder says:

    People commenting on low take up rate on network that was recently built is laughable. It could take at least 1 to 2 years for people to come out of their existing contract to sign up for new service. Properties could be Ready For Service but are consumers Ready to Buy the service? It would be interesting to see Altnets take up rate for only RFS numbers which are more than 1 and 2 years.

    I think these investments are final lot of investment we will be seeing going into Altnet. So, well done on securing this.

  10. Avatar photo GG says:

    Great. If they’d like to add Berkhamsted back into their planned coverage, that would be nice.

  11. Avatar photo Doireman says:

    Nice to know they’ll be expanding further. Hopefully this allows them to more areas of the deployment areas they already have.

  12. Avatar photo DBM says:

    It would be nice if they finished the areas they started. They’ve still not finished Bedford, 18 months after putting fibre in the ground, and 4 months after Netomnia saying it’s live. How can they wire up an entire town, and then just go dark on it ? And be working on others too, when they haven’t lit up the one they did already?

Comments are closed

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