Ofcom probe UK broadband network Grayshott Gigabit over liability funds

The telecoms and media regulator, Ofcom, has published an additional investigation into another alternative full fibre broadband network (altnet) – Grayshott Gigabit (currently known as Gigabit IQ) – after they found “reasonable grounds to believe” that they may not be meeting their duties to show they have secured funds for meeting their liabilities.

Under Regulation 16 of the Electronic Communications Code (ECC), network operators with Code Powers have a legal obligation to provide the regulator with documents each year – on 1st April – confirming that they have sufficient funds to meet certain liabilities (details). These liabilities include for fixing damage caused by the installation or removal of electronic communications apparatus on streets and roads.

The funds are intended to act as an insurance so that, in the event of the code operator falling into administration or ceasing to trade, there are sufficient funds available to remedy any works the operator was carrying out when using its Code Powers (i.e. digging up roads to lay its new network). “This helps ensure that the public is not left having to pay for such works,” said Ofcom.

The rule has arguably become much more important in recent years as network builders have come under increasing pressure from rising build costs, high interest rates and competition. “Given how quickly the market is changing, ensuring that Code Operators are securing the right funds is more important than ever before,” added Ofcom.

Back in July 2026 Ofcom opened a series of related investigates into multiple altnets (here), which aimed to assess whether there are “reasonable grounds to believe” that they may not be meeting their duties to show they have secured the necessary liability funds. At the time this list didn’t include Grayshott Gigabit, but Ofcom has just added them via a new investigation (curiously this was only published yesterday, albeit dated to July).

ISPreview understands that a number of the altnets currently being subjected to this have already responded to highlight how they were already in compliance with the rules (inc. providing Ofcom with the necessary docs) and disputed the need for the regulator’s probe.

However, if Ofcom does find fault, then they do have several options, which could involve enforcement of a financial penalty and / or requiring that the operators correct their mistake as soon as possible (i.e. making sure they have adequate funds and submission of the necessary certificates). In theory, the regulator could also revoke a network operator’s Code Powers, but that could be extremely damaging and is probably viewed as a last result.