Lenders Set to Take Control of Rural UK Broadband Altnet ISP Airband UPDATE

A new report has claimed that the Aberdeen Group backed alternative network (altnet) provider Airband, which recently put itself up for sale and has built a mix of gigabit broadband networks across rural parts of England and North Wales, has agreed to hand control of the business to its lenders.

Airband has previously stated that their broadband network currently spans a total of “more than 440,000 premises in over 200 communities across 7 counties“ (here), which we were told breaks down as being 175,000 premises via “fibre” (FTTP) and 265,000 premises via wireless (Ready for Service). The company has also recently expanded FTTP into off-net areas by partnering with Openreach (here) and have a total of 30,000 customers.

However, the ISP has only recently gone through a period of restructuring, which resulted in more jobs losses and adjusted the company’s focus toward commercialising their existing broadband network instead of building new infrastructure. The outcome reflected many of the same pressures as other altnets have been facing over the past few years (e.g. high interest rates, rising build costs and strong competition).

Since then the business has gone through a strategic review, which we reported in July 2026 had resulted in Airband “[commencing] a formal sale process” to try and find the right “long-term owner” for the business (here). Shortly after that the provider confirmed that it had appointed financial restructuring expert Nick Pike as an Interim Independent Director to its Board.

The latest development comes from Bloomberg’s Digital Infrastructure reporter, Paula Doenecke, who alleges that Aberdeen – a mostly equity investor – has decided to hand control of the struggling UK broadband provider to its lenders (i.e. banks, private-credit and infrastructure lenders etc.). In response, Airband has reiterated the same comment it made when the sale process first began (see below). Sadly, the full Bloomberg Link piece sits behind a paywall.

A spokesperson for Airband told ISPreview (July 2026):

“Following a strategic review of the business and its future ownership, Airband has commenced a formal sale process to identify the right long-term owner for the company.

Airband continues to operate and trade as normal throughout the process. Our network remains fully operational and there is no impact on customer services or day-to-day operations.

The business is being taken to market as a fully operational going concern. The process is ongoing and commercially confidential, and it would not be appropriate to comment on potential buyers or outcomes at this stage.

Our focus remains on supporting our customers, maintaining our network and continuing to deliver our commitments while the process progresses.”

The situation typically suggests that Aberdeen may not have been willing to keep pumping money into the business and thus Airband’s lenders are being given control, as they are now the parties with the most financial exposure and thus leverage. The situation, if confirmed, would not be a million miles from when Gigaclear’s lenders took over control of that business and accepted a big haircut in the process (here).

The reason why Airband has reissued the same comment as they did before is because a sale of the business, regardless of who is in control, still remains the favoured outcome. But it’s also possible that the lenders may yet agree to take a haircut on the company’s debt pile in order to make the altnet more attractive to a potential buyer or to keep it going on a more viable footing. How much Aberdeen stands to get back on their original investment, if anything, will thus remain an open question.

Airband’s most recent annual accounts revealed that revenues to the end of 2024 had increased by 37% to £6,667,000 and their total staffing count had fallen from 451 to 285. The company’s operating loss increased to £47.23m (2023: £37.06m) and they reported total assets of £179.81m and total liabilities of -£224.92m. But the results also predicted achieving EBITDA positivity by 2028 (i.e. earnings before interest, taxes, depreciation, and amortisation).

UPDATE 3:38pm

We’ve had a comment from Aberdeen.

A spokesperson for Aberdeen told ISPreview:

“Strong demand for fibre connectivity, underserved rural markets with less competition and government-backed subsidy support schemes had originally drawn a range of investors to the sector.

More recently, Airband has faced significant headwinds consistent with those affecting the wider UK fibre market, including higher build costs, slower customer growth, increased competition, and a challenging financing environment. These are challenges that have since resulted in material impairments and restructurings elsewhere in the sector.

Following a disciplined review of future funding requirements and risk-adjusted return prospects, we made the difficult decision to cease further funding.

While the situation remains challenging, this investment was one part of a diversified portfolio which has otherwise performed strongly and is currently expected to deliver positive returns to fund investors overall, notwithstanding the ultimate outcome of Airband.”