{"id":36151,"date":"2023-10-27T11:32:49","date_gmt":"2023-10-27T10:32:49","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=36151"},"modified":"2023-10-31T09:05:26","modified_gmt":"2023-10-31T09:05:26","slug":"altnet-isp-grain-cuts-jobs-and-slows-uk-fttp-broadband-rollout","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/10\/altnet-isp-grain-cuts-jobs-and-slows-uk-fttp-broadband-rollout.html","title":{"rendered":"AltNet ISP Grain Cuts Jobs and Slows UK FTTP Broadband Rollout UPDATE2"},"content":{"rendered":"

Alternative network operator and broadband ISP Grain<\/a> (Grain Connect<\/a>) has today become the latest UK builder of Fibre-to-the-Premises (FTTP<\/a>) infrastructure to announce some job cuts and a “temporary<\/em>” reduction in the level of their network expansion, which will continue until they’re able to secure more investment.<\/p>\n

Grain<\/a> has so far unveiled full fibre builds for over 50 locations across the country (plus 150 new build housing developments), which includes a lot of small to modest sized patches of various urban areas like Leicester, Liverpool, Accrington, Grimsby, Cleethorpes, Scarborough, Carlisle, Barrow-in-Furness, Hartlepool, Newport, Sunderland, Blackburn and so forth.<\/p>\n

NOTE:<\/strong> Grain<\/a> has previously secured funding commitments of c. \u00a3220m (here<\/a>) – via Equitix, Albion Capital, Pinnacle Group and German Landesbank Nord L\/B – and initially aimed to cover 400,000 UK premises. The operator has 150 full time staff and made \u00a348.7m of capital expenditure in the year to 31st March 2023 (up from \u00a311.2m in 2022).<\/div>\n

However, the operator has remained coy about their progress, although independent data from Thinkbroadband<\/a> recently estimated that they’d covered around 70,000 premises (RFS). The real figure may be a bit higher than this, since TBB has to play catch-up as new areas go live (i.e. they’re often 2-3 months behind actual build)<\/p>\n

At the same time network operators \u2013 more broadly \u2013 are currently under a lot of strain, particularly from rising levels of competition (price and overbuild etc.), rising costs (e.g. leases, build, inflation) and the need to generate a good level of take-up in order to satisfy investors. Such pressures can make it harder to attract fresh funding, which has resulted in several operators slowing their build and cutting jobs as they re-focus on growing take-up. The same now seems to be true of Grain<\/a>.<\/p>\n

A spokesperson for Grain Connect<\/a> said (News and Star<\/a>):<\/strong><\/p>\n

“Raising capital at this time is taking longer than it did a year ago.<\/p>\n

As a result, we have taken the decision to temporarily reduce the level of our network expansion, while we raise further capital to accelerate in 2024.<\/p>\n

As a result, we are reducing around 20 roles across the country, with less than half of those in our Carlisle Headquarters.”<\/p><\/blockquote>\n

Despite the problems, Grain was keen to point out that “independent benchmarking shows our network deployment costs to be the lowest in the industry<\/em>” (this was not substantiated) and they claim to be seeing “strong customer take-up<\/em>” that is ahead of their business plan, albeit without confirming any figures. The operator added that the “foundations of the business<\/em>” remain “strong<\/em>“. Much will now depend upon whether the needed funding can indeed be secured in 2024.<\/p>\n

Customers of the new service, once live, normally pay from just \u00a319.99 per month for a symmetric 100Mbps package on an 18-month term, which goes up to just \u00a334.99 for their top 900Mbps plan (take note that out-of-contract prices are \u00a35 higher than this). All of these packages come with unlimited usage, free installation, a router and a pledge to ensure \u201cno in-contract price rises.\u201d The ISP also has a social tariff for those on benefits.<\/p>\n

The ISP also has a promotion running that offers the first three months of service at just \u00a35 per month across all packages.<\/p>\n

UPDATE 12:51pm<\/strong><\/p>\n

Grain has provided an additional comment, which also states that their network covers 150,000 premises (RFS).<\/p>\n

A spokesperson for Grain said:<\/strong><\/p>\n

“Raising capital at this time is taking longer than it did a year ago. As a result, we have taken the decision to temporarily reduce the level of our network expansion, while we raise further capital to accelerate in 2024. As a result, we are reducing around 20 roles across the business.<\/p>\n

We have around 150,000 homes ready for service across the country, with a rapidly growing customer base and customer take-up performing ahead of our business plan. Independent benchmarking also shows our network deployment costs to be the lowest in the industry, giving us a strong competitive position.<\/p>\n

Grain is in a unique position in the Altnet market, in that it has already created a sustainable business model without the need for consolidation. This allows us to provide low prices to our customers, while also building a strong profitable business and we are on track to become the first Altnet to deliver positive EBITDA.”<\/p><\/blockquote>\n

The latest RFS estimate from Thinkbroadband<\/a> is also now closer to 70,000, but they’re expecting to find more once they get a chance to focus on checking.<\/p>\n

UPDATE 31st Oct 2023<\/strong><\/p>\n

TBB has been busy running deeper coverage checks on Grain and they’ve now found about 95,000 RFS premises.<\/p>\n","protected":false},"excerpt":{"rendered":"

Alternative network operator and broadband ISP Grain (Grain Connect) has today become the latest UK builder of Fibre-to-the-Premises (FTTP) infrastructure to announce some job cuts and a “temporary” reduction in the level of their network expansion, which will continue until they’re able to secure more investment.<\/p>\n","protected":false},"author":1,"featured_media":20316,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,56],"class_list":["post-36151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-fttp"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/111306530809632101","error":""},"yoast_head":"\nAltNet ISP Grain Cuts Jobs and Slows UK FTTP Broadband Rollout UPDATE2 - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Alternative network operator and broadband ISP Grain (Grain Connect) has today become the latest UK builder of Fibre-to-the-Premises (FTTP) infrastructure\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/10\/altnet-isp-grain-cuts-jobs-and-slows-uk-fttp-broadband-rollout.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AltNet ISP Grain Cuts Jobs and Slows UK FTTP Broadband Rollout UPDATE2 - 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