{"id":36426,"date":"2023-11-28T00:01:32","date_gmt":"2023-11-28T00:01:32","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=36426"},"modified":"2023-11-28T07:05:16","modified_gmt":"2023-11-28T07:05:16","slug":"london-full-fibre-isp-community-fibre-to-cut-jobs-and-pause-build","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/11\/london-full-fibre-isp-community-fibre-to-cut-jobs-and-pause-build.html","title":{"rendered":"London Full Fibre ISP Community Fibre to Cut Jobs and Pause Build"},"content":{"rendered":"

Network operator and UK broadband ISP CommunityFibre<\/a>, which is deploying a 10Gbps capable Fibre-to-the-Premises (FTTP<\/a>) network across London and some surrounding areas, has today become the latest in a growing line of alternative network providers to confirm plans for staff redundancies and build suspension.<\/p>\n

At present the operator, which also owns Box Broadband<\/a> \u2013 a similar network that targets Surrey and West Sussex in England (here<\/a>), is currently aiming to reach 2.2 million UK premises by the end of 2024 \u2013 more than half of all the homes in London (3.7m). Box Broadband separately holds a \u201cgoal of delivering fibre to in excess of 250,000 homes by the end of 2024<\/em>\u201d (not included in CF\u2019s 2.2m target), although their progress remains unclear.<\/p>\n

NOTE:<\/strong> CommunityFibre<\/a>\u2019s network had covered over 1 million homes and 212,000 businesses by the end of July 2023, while Box Broadband has done at least 50,000 premises (Box hasn’t given an update in some time).<\/div>\n

As well as being one of the largest UK AltNets by coverage, CF has also secured one of the biggest funding pots. The operator was originally backed by \u00a390m from Amber Infrastructure and RPMI Railpen, followed later by \u00a3400m via Warburg Pincus and DTCP, then \u00a3100m from a syndicate of existing and new banks. Back in October 2022 they also added a new finance facility worth \u00a3985m \u2013 made up of \u00a3685m in committed facilities and a further \u00a3300m uncommitted accordion (here<\/a>).<\/p>\n

The provider is also well-known for having some of the most aggressive broadband pricing in the market. Customers typically pay from just \u00a320 a month on 24-month term for 150Mbps with an included router (\u00a322 thereafter), which rises to \u00a349 for their top 3Gbps tier (\u00a351 thereafter). On top of that they also have a special tariff that gives you 20Mbps speeds for just \u00a312.50 per month on a 12-month term.<\/p>\n

In short, CF has generally managed to cover a sizeable number of UK premises with a very affordable full fibre service and often at a fairly rapid pace, which is largely thanks to the relatively low cost of their PIA heavy build (i.e. running fibre via Openreach<\/a>’s existing cable ducts and poles). But it seems as if even they aren’t completely immune to the market’s wider pressures.<\/p>\n

According to credible sources, ISPreview understands that CF recently completed a strategic review<\/strong> of the business and have thus decided to focus on growing their customer base (i.e. the goal of creating a profitable business more quickly), rather than on building out the network’s coverage.<\/p>\n

The sting in the tail here is that they’ll now finish any network build projects that are already close to completion, but will then be suspending the build programme for an unknown period of time. Suffice to say, you can’t do this without making a few redundancies. At this stage it’s unclear precisely how many jobs may be shopped, but the unconfirmed talk is of up to around 200. Not such a happy Christmas for some.<\/p>\n

A Spokesperson for Community Fibre told ISPreview:<\/strong><\/p>\n

\u201cCommunity Fibre has successfully grown to become the largest 100% full fibre network in London covering 1.3 million properties across the capital, which is more than one third of London homes. More than 200,000 residents and businesses have chosen to join Community Fibre for lower prices, faster speeds and a better service.<\/p>\n

Off the back of this success, the Community Fibre Board has decided to pause our network build as we can deliver a stronger return to our investors by focusing even more on our already successful marketing and sales activities and as a result continue to fill our network with even more happy customers.<\/p>\n

There will be some redundancies, but we are working to minimise those with the opportunities in the other growing parts of our business. Unfortunately, we cannot comment further on the redundancies until the collective consultation process is complete in the new year.<\/p>\n

This announcement will not impact Community Fibre\u2019s existing or future customers, and we remain committed to bringing better, more affordable, sustainable 100% full fibre broadband to more Londoners.\u201d<\/p><\/blockquote>\n

The news comes as network operators 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.<\/p>\n

Moves like this are a prudent course of action, particularly during a period where investors are becoming more cautious and raising fresh investment is not as easy as it once was. Operators in this position may also become more exposed to consolidation further down the road, although that’s by no means a certainty. For its part, CF believes its own operations to be well funded, at least with respect to their existing build projects.<\/p>\n

Speaking of take-up, Community Fibre confirmed above that they’re now home to more than 200,000 customers, which is a reasonable figure given how rapidly they’ve expanded their coverage over the past couple of years.<\/p>\n

UPDATE 7:03am<\/strong><\/p>\n

We also queried about the impact of all this on Box Broadband. A spokesperson for CF added: \u201cWe have already begun to integrate Box Broadband into the Community Fibre operation, and therefore the pause to build also applies to our footprint in Surrey and Sussex where we operate under the Box brand. There will be no further redundancies in Box as a direct consequence of pausing the Community Fibre network build<\/em>.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Network operator and UK broadband ISP CommunityFibre, which is deploying a 10Gbps capable Fibre-to-the-Premises (FTTP) network across London and some surrounding areas, has today become the latest in a growing line of alternative network providers to confirm plans for staff redundancies and build suspension.<\/p>\n","protected":false},"author":1,"featured_media":31278,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[1491,56],"class_list":["post-36426","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-community-fibre","tag-fttp"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/111485242611966658","error":""},"yoast_head":"\nLondon Full Fibre ISP Community Fibre to Cut Jobs and Pause Build - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Network operator and UK broadband ISP CommunityFibre, which is deploying a 10Gbps capable Fibre-to-the-Premises (FTTP) network across London and some\" \/>\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\/11\/london-full-fibre-isp-community-fibre-to-cut-jobs-and-pause-build.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"London Full Fibre ISP Community Fibre to Cut Jobs and Pause Build - 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