Lightning Fibre Slows Down UK FTTP Broadband Network Build and Cuts Jobs
Eastbourne-based alternative broadband builder and ISP Lightning Fibre, which over the past few years have been building a new Fibre-to-the-Premises (FTTP) network across parts of Sussex and Kent in England, has confirmed to ISPreview that they’ve hit staff with another round of redundancies and slowed their network build.
The operator, which has built to a number of locations like Eastbourne, Hastings, Hailsham, St Leonard’s, Heathfield and more, originally planned to cover 140,000 premises with their gigabit-capable network. But it remains unclear how many premises they actually reached before going through a rapid administration earlier this year and suffering some redundancies in the process (here).
However, back in August 2024 we noted that the operator sent a strong signal of their desire to “facilitate the extension of the network“, which came through an application for Code Powers from Ofcom (here). But the latest development suggests that the way they approach this may be going through some changes.
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The situation came to light after ISPreview noticed a surge in redundancy notices toward the end of last week, seemingly all from the operator’s internal build team. Upon investigating this, we were told, by sources, that the operator had suddenly informed staff about a further round of redundancies – allegedly impacting up to 30 internal staff (mostly members of their build team). For a smaller altnet, this can have a big impact.
Lightning Fibre Statement to ISPreview
Our network is now mostly completed in Eastbourne, Hailsham, Heathfield, Hastings, Polegate and Tenterden, and our roll out will now slow down considerably.
We regret the redundancies that this decision has necessitated.
Whilst we operate in a highly-competitive and cost-sensitive market, we are continuing to grow both our network and our customer base, providing great value and service to our residential and business users.
We remain a committed local employer and our HQ will remain fully operational in Polegate, with our commercial teams (sales, installs, customer services) remaining based in Eastbourne.
According to our sources, Lightning Fibre may now be using the contractor ‘Nets‘ to continue their build going forward, albeit clearly at a slower pace. This is perhaps not a particularly surprisingly development, given the currently very difficult trading environment for many alternative networks. But that will come as little consolation to those who are either about to be out of work or have already gone.
Regular readers will know that a growing number of network operators, both big and small alike, have over the past couple of years moved to slow their network deployments (resulting in job losses) and switched their focus toward growing take-up to ensure some future stability. Such moves are a prudent course of action in the current climate of rising build costs and high interest rates, which makes it harder to raise fresh investment.
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, BlueSky, Threads.net and Linkedin.
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Cost pressures and an over supply in the market are starting to impact many of the Alt Nets, It is being reported that Hyperopic have made a £147M Loss
Thames Water is carrying a debt of 7X it’s annual revenue and it’s considered to be on the verge of bankruptcy, but that looks good compared to many altnets. Despite what people on think I am not anti altnet but I just don’t see how the financials can ever add up in such a competitive market and I’ve read Financial experts (who clearly know more than me) giving similar sentiments.
The business model seems to rely on an ever growing market and a low level of customer churn, Both are unlikely in my view so it will be the survival of he fittest with a lot of consolidation in the market
Noticed this story in The Telegraph:-
https://www.telegraph.co.uk/business/2024/09/30/hyperoptic-makes-heavy-loss-interest-bill-doubles/
Begs the question: how long before Foresight Group consolidates their full fibre operators?
More evidence that letting the free market be free is not a good idea.
Altnets should have had to bid on areas and be limited to one per area until full fibre coverage was at 80%+ for the UK. Most urban areas, even in market 3, can sustain three players.
Now all the Altnets are going bust and being hoovered up into yet another massive entity that’ll end up like NTL. Some areas don’t have any Altnet and now never will.
Yet again the UK has wasted an oportunity to upgrade its own infrastructure.
That is more or less what happened in the first round if BDUK iirc. Our village was then ignored by the altnet that acquired our area and we had to fight to be taken out of scope and go to an altnet that was willing to do the job.
This is a terrible argument, the fact that a business can fail actually PROVES that the free market works
Because otherwise they do not fail and instead just turn into huge black holes that the taxpayer needs to keep footing the bill for
India decided to nationalize all their broadband and because of that they destroyed their telecoms. Socialism never works and is responsible for the biggest famines and death in human history
“Socialism never works and is responsible for the biggest famines and death in human history”
You might be confusing socialism with dictatorial communism there. Modern democracies are a balance of socialism and capitalism, to varying different degrees. But agree on your other point. It’s much better to have failures and consolidation than my taxes footing the bill, although Hyperoptic are not yet in the failure boat and consolidation isn’t always a bad thing.
Sam, ensuring company’s have minimal competition to enable them all to establish themselves has nothing to do with Socialism.
If Altnets didn’t overbuild, they would not be in the mess they are in. If Altnets focused on one area and getting uptake, instead of building in 6 and going live in 10% of three of them, they wouldn’t be in this mess either.
When is anyone going to look at the cost of ftth broadband and come up with a plan to make altnets work, 25 pounds per month is not going to get you a profitable company that needs zero investment or GOV support. I would love to hear what the investors think.
Especially when many of them have a cost per premises passed well in excess of that of Openreach’s build (Netomnia & Trooli being notable exceptions).