{"id":34323,"date":"2023-05-02T07:08:48","date_gmt":"2023-05-02T06:08:48","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=34323"},"modified":"2023-05-02T16:37:06","modified_gmt":"2023-05-02T15:37:06","slug":"altnet-woes-grow-as-uk-full-fibre-isp-zzoomm-sees-job-losses","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/05\/altnet-woes-grow-as-uk-full-fibre-isp-zzoomm-sees-job-losses.html","title":{"rendered":"AltNet Woes Grow as UK Full Fibre ISP Zzoomm Sees Job Losses"},"content":{"rendered":"<p>Oxfordshire-based alternative network and UK broadband ISP <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/zzoomm\" rel=\"nofollow\" target=\"_blank\">Zzoomm<\/a> has reportedly become the latest full fibre builder to hit troubled waters. The provider is understood to be laying off 300 employees in its construction team (engineers and office jobs), which is said to reflect about 50% of their workforce.<!--more--><\/p>\n<p><a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/zzoomm\" rel=\"nofollow\" target=\"_blank\">Zzoomm<\/a>, which aimed to build their <strong>Fibre-to-the-Premises<\/strong> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a>) network to cover 1 million premises across 85 UK towns by the end of 2025, has generally focused their rollout on smaller towns in parts Berkshire, Oxfordshire, Herefordshire, North Yorkshire, Staffordshire, Wiltshire, West Yorkshire and Cheshire. So far they&#8217;ve covered 135,000 Ready for Service premises (up from 50,000 in July 2022) and signed-up 11,000 customers.<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> <a class=\"shortlink shortlink-155\" title=\"zzoomm\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/zzoomm\" target=\"_blank\" rel=\"noopener\">Zzoomm<\/a> is fuelled by an equity investment of <strong>\u00a3100m<\/strong> from <a href=\"https:\/\/www.oaktreecapital.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Oaktree Capital<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/09\/full-fibre-uk-isp-zzoomm-get-100m-oaktree-boost-to-expand.html\">here<\/a>) and a <strong>\u00a3100m<\/strong> debt facility via an international banking consortium (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2021\/10\/zzoomms-uk-gigabit-fibre-rollout-boosted-by-gbp100m-investment.html\">here<\/a>).<\/div>\n<p>Customers who take the residential service typically pay from \u00a329.95 per month for an unlimited 150Mbps (symmetric speed) package on a 12-month term with an included router, which goes up to just \u00a364.95 if you want their top 2Gbps tier (or \u00a339.95 for 900Mbps+). Most of their packages also discount the price for the first 3 months of service. Overall, they&#8217;re quite competitively priced.<\/p>\n<p>However, much like other full fibre operators, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/zzoomm\" rel=\"nofollow\" target=\"_blank\">Zzoomm<\/a> may be under pressure due to a combination of issues, such as rapidly rising costs (build, leases etc.), aggressive competition from rivals (e.g. overbuild) and the related need to secure a viable level of take-up by consumers.<\/p>\n<p>All of this has a tendency to dampen the appetite of investors to keep the taps fully open and finding fresh sources of funding has become more of a challenge for everybody, which tends to slow builds (i.e. forces the operator to focus on take-up, rather than new fibre) and that in turn puts pressure on jobs. Only last week we reported on similar problems at <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/lsb\" rel=\"nofollow\" target=\"_blank\">Lightspeed Broadband<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/04\/job-losses-strike-uk-full-fibre-isp-lightspeed-broadband-as-build-slows.html\">here<\/a>).<\/p>\n<p>According to <a href=\"https:\/\/www.telegraph.co.uk\/business\/2023\/05\/01\/zzoomm-lays-off-hundreds-engineers-broadband-woes-deepen\/\" target=\"_blank\" rel=\"noopener\">The Telegraph<\/a>, Zzoomm&#8217;s management has now begun the traditional 45-day consultation process, with staff being informed via one-on-one meetings whether or not their jobs will be retained. But a spokesperson for the operator still said they expect to see faster growth in 2023 than 2022 (it&#8217;s unclear if they mean coverage, revenue or something else) and are even actively recruiting for some roles, as well as considering acquisitions as part of their growth strategy (not long ago they were sniffing around <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/trooli\" target=\"_blank\">Trooli<\/a>, but ultimately <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/04\/agnar-uk-infrastructure-take-control-of-full-fibre-provider-trooli.html\">lost out<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oxfordshire-based alternative network and UK broadband ISP Zzoomm has reportedly become the latest full fibre builder to hit troubled waters. The provider is understood to be laying off 300 employees in its construction team (engineers and office jobs), which is said to reflect about 50% of their workforce.<\/p>\n","protected":false},"author":1,"featured_media":27495,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,56,1867],"class_list":["post-34323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-fttp","tag-zzoomm"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AltNet Woes Grow as UK Full Fibre ISP Zzoomm Sees Job Losses - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Oxfordshire-based alternative network and UK broadband ISP Zzoomm has reportedly become the latest full fibre builder to hit troubled waters. 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