Nexfibre Responds to Concerns Over UK Broadband ISP Onboarding Progress
Network operator nexfibre, which is working alongside Virgin Media to deploy a new 10Gbps full fibre broadband (FTTP) network across millions of UK premises (c.2.2m have already been built), has told ISPreview that they “remain focused on enabling as many ISPs as possible“. This came after some of ISPreview’s sources indicated that their wholesale plans seem to have stalled.
Just to recap. Back in 2022 Telefónica, Liberty Global and InfraVia Capital Partners setup nexfibre as a new £4.5bn joint venture (here), which aimed to deploy an open access (wholesale) full fibre network to reach “up to” 7 million UK homes (starting with 5m by 2026) in areas NOT served by Virgin Media’s own network of 16m+ premises (side note: Telefónica and Liberty Global also back Virgin).
However, as previously reported (here), the nexfibre build recently suffered a big hit after JV partner Telefonica launched a strategic review. Not only did this pause Virgin Media’s (O2) own plans for opening up their existing broadband network to wholesale via a new NetCo company (here), but it also caused nexfibre to scale-back its FTTP coverage target for 2025 to 2.5 million premises (here) – roughly 500k premises less than expected.
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At the time nothing was specifically mentioned about nexfibre’s efforts to onboard more ISPs as part of their own semi-separate wholesale plans, although we have long assumed that it might be impacted too – given the close alignment of strategy with Virgin Media and shared parentage.
Over the past few weeks’ a number of industry sources have since informed ISPreview that nexfibre appears to have slowed or paused their engagement with other ISPs, with related account managers being moved to other parts of the business. Naturally, we asked nexfibre about the status of their wholesale offering to the wider market and whether they were still open to other ISPs outside the VMO2 / giffgaff group. The response was mixed.
A nexfibre spokesperson told ISPreview:
“nexfibre is creating a wholesale platform for all ISPs – nothing has changed in our mission or belief that a scaled sustainable competitor to Openreach is needed for long-term market health.
The strong interest we have received from ISPs, outside of our shareholder eco-system, has been encouraging and reaffirms our investment in future-ready XGS-PON infrastructure.
While ISP integration is progressing, it is a complex process, often with bespoke requirements. In light of such demand, we have naturally had to prioritise our efforts, but we remain focused on enabling as many ISPs as possible to use our high-quality, full fibre platform.”
The operator doesn’t spell out precisely what they mean by “prioritise our efforts” in this context, although it could suggest that they’re opting to focus more on larger ISP partners for now (at the cost of smaller players), or have decided to focus on getting giffgaff ready for launch before progressing third-party ISPs to market.
The fact is that Telefónica is involved with both nexfibre and Virgin Media, thus their strategic review will be placing pressure on both sides and Liberty Global is having to manage that as best they can. Speaking of which, the CEO of Liberty Global, Mike Fries, recently indicated that it could take 24 months for Telefónica to arrive at a decision about their future direction (here).
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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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Telefonica seems to be pushing Brussels to allow a greater degree of consolidation across the EU. I wonder if a favourable outcome is a critical factor in completing the review.
So much smoke and mirrors coming from the VM ecosphere just now. It really feels like VM’s ownership group really doesn’t want to share their slice of the pie of the UK broadband market. I would not be surprised if the only ISPs selling across nexfibre are part of the VM associated group of companies, as allowing other retailers on their infrastructure means a reduction in potential group income.
A diminishing pie.
Existing VM areas are left to rot (literally – I’ve seen cabinets with missing doors and exposed wires and connectors) while other providers are rolling out FTTP in those areas, which will undoubtedly prompt many to switch so they get a better internet service. Sure, people who want their included TV package may hold out, but many households are switching to streaming services.
Nexfibre OTOH is busy overbuilding areas with one or more already existing FTTP providers. With an ISP choice of ONE and sky high prices, why would anyone switch to these guys?
Their strategy makes zero sense. If it was me, I would focus on their existing footprint and upgrade those areas to FTTP as quickly as possible to hold on to that customer base.
They are upgrading the existing stuff pretty rapidly. Should be done by 2028.
By 2028 they will be an irrelevance if they delay it that long for existing customers.
As soon as sky signed with city fibre , this wholesale dream died
There might be some truth in this. CityFibre have overbuilt much of VM’s existing footprint, and Altnets are building in many NexFibre areas. These Altnets may become the focus of CityFibre for acquisition which would be disastrous for VM’s marketshare in the long time.
With Sky tapping into CF’s growing footprint their marketshare is likely to grow too, especially with the demise of TT and their shrinking customer base.
If anything, I think it reinforces the need for a proper Wholesale offering. The alternative is they lose everything.
Part of the issue will likely be down to timing. At what point could they be forced under regulation to provide a wholesale service given the combined scale?
CityFibre have overbuilt less than a quarter of the older VM footprint. Think they’re at 4.3 million RFS, VM have just over 16 million not including Nexfibre so even if overbuild rate 90%, it isn’t, still a long way to go.
Telefonica own half of VMO2 and a third of Nexfibre. They’re busy behind the scenes freezing everything in aspic.
At this point, I’m just hoping for a relatively cheap symmetrical speed connection which allows me to use my own router.
Contrary to a lot of the messages here nexfibre are my only option. Openreach seem to have forgotten my town exists. Trooli laid but gave up with my road. Giganet/all point fibre/cuckoo put in microducting but never any fibre (couldn’t be bothered after nexfibre beat them at my end if the town?). 5g is poor. Im completely screwed – vm is the most unreliable provider i have even had the misfortune of using but its that or 30mb copper which wasn’t enough to WFH. I was banking on nexfibre allowing reselling but based on this I’m stuffed…
Yes Cheesemp they are my only choice after chasing up Openreach who have confirmed my estate is now off scope due to too many objections to poles. So like you I was hoping for someone else other the Virgin selling Nexfibre but now looks more unlikely and being pushed into having to go via Virgin if I want full fibre.
TL;DR, if you work from home and VM on Nexfibre is the only option, give it a go, it’s not too bad.
I had a similar situation here where I was stuck on 80/20 VDSL. Along came Jurassic Fibre, who dug and ducted the street,
Then they just paused their operations, the ducts sat empty for over a year.
Meanwhile, along came VM/Nexfibre, dug their straws in, and at that point, that was my only option, as no ducts for Openreach either.
Now, about a year later, Openreach has been round and dug their ducts in to offer their wholesale services, fab!
So don’t dispair, it’ll get better, it seems like where there’s one provider, others come along to compete, you’d think they’d
go for the areas with no competing services but apparently not!
My experience with Virgin on Nexfibre to date, no problems and actually a pretty stable network, a couple of short outages early on
but they were still digging in the state then, so possibly unavoidable. Good speeds, I’m on the 500meg service with the symmetrical
upload addon, you get a public IPv4 which is dynamic but hardly ever changes, mines never changed actually. I know the customer
services are appalling but I’ve not had to ring them yet, maybe I’ve just jynx’d that!
I signed up for GiffGaff’s 500Mb trial on Nexfibre’s network. Rejected us due to lack of network coverage even though I can order VM up to 2Gb (XGSPON area). Doesn’t inspire much confidence if their own ISPs can’t get up to date coverage information…
Nexfibre’s network is the only FTTP network on offer in my area. It’s them or nothing so until they get some wholesale providers signed up and available to order from, it’s Virgin or nothing for me. My Openreach FTTC sync rate was around 54 Mbps back in 2015, and is now down to about 30 Mbps. I’ve had engineers and they say the connection is performing as expected but that’s only because Openreach constantly alter the estimated sync rates and in my case, the only way is down.
I’m currently on OR FTTP and Nexfibre ran into my area and (CF are also planning to install 3 FTTP providers at 1 address). I would be willing to try it out, the issue is it’s locked to VM. I’m sure there are others are in a similar boat of wanting to try it but not wanting VM.