{"id":36664,"date":"2023-12-21T08:59:23","date_gmt":"2023-12-21T08:59:23","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=36664"},"modified":"2023-12-21T09:33:26","modified_gmt":"2023-12-21T09:33:26","slug":"freedom-fibre-and-vx-fiber-agree-to-merge-uk-full-fibre-networks","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/12\/freedom-fibre-and-vx-fiber-agree-to-merge-uk-full-fibre-networks.html","title":{"rendered":"Freedom Fibre and VX FIBER Agree to Merge UK Full Fibre Networks"},"content":{"rendered":"<p>Alternative network operator <a href=\"https:\/\/www.freedomfibre.com\" target=\"_blank\" rel=\"noopener\">Freedom Fibre<\/a> has this week confirmed earlier speculation by announcing that they&#8217;ve signed an agreement with InfraBridge-backed VX UK Holdings ltd (VXFIBER) to combine their respective UK full fibre (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a>) broadband networks &#8211; reflecting a combined total of 285,000 premises passed.<!--more--><\/p>\n<p>Reports first started hinting that <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/freedomfibre\" rel=\"nofollow\" target=\"_blank\">Freedom Fibre<\/a> might soon make a move to acquire VX in the summer (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/07\/freedom-fibre-sniff-possible-deal-for-vxfibers-uk-fttp-network.html\">here<\/a>). At present <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/freedomfibre\" rel=\"nofollow\" target=\"_blank\">Freedom Fibre<\/a>\u2019s network \u2013 backed by over <strong>\u00a3111m<\/strong> of investments from <strong>Equitix<\/strong> \u2013 covers \u201c<em>approximately<\/em>\u201d <strong>100,000 premises passed<\/strong> and their initial goal was to reach over 150,000 properties by the end of 2023. After that the operator, supported by UK ISP <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a>, also held an aspiration to eventually cover over 2 million premises in England and Wales.<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/freedomfibre\" rel=\"nofollow\" target=\"_blank\">Freedom Fibre<\/a>\u2019s network is mostly working to cover parts of Cheshire, Greater Manchester and Shropshire in England and North Wales.<\/div>\n<p>By comparison, VXFIBER, which is owned by<strong> InfraBridge<\/strong>, has a number of deployments across the Staffordshire cities and towns of Stoke-on-Trent (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/11\/1gbps-vxfiber-fttp-broadband-goes-live-in-stoke-on-trent-uk.html\">here<\/a>), Leek (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2022\/01\/lilaconnect-start-gigabit-fttp-broadband-rollout-in-leek.html\">here<\/a>), Cannock and Penkridge (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2022\/09\/lilaconnect-add-2-staffordshire-towns-to-fttp-broadband-build.html\">here<\/a>), as well as Colchester in Essex (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2021\/03\/vxfiber-begins-1gbps-fttp-broadband-build-in-colchester-uk.html\">here<\/a>), parts of London (via Prime Fibre), Haverhill in Suffolk (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2022\/10\/lilaconnect-brings-fttp-broadband-build-to-haverhill-in-suffolk.html\">here<\/a>), Crewe and Nantwich in Cheshire (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2021\/07\/vx-fiber-start-fttp-broadband-rollout-in-two-cheshire-uk-towns.html\">here<\/a>), and some projects in Bristol and Uttoxeter. Consumers access most of these via ISP <a href=\"http:\/\/www.lilaconnect.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">LilaConnect<\/a>.<\/p>\n<p>However, VXFIBER\u2019s operations in the UK were recently hit by a spate of redundancies, with the company also \u201c<em>pausing further deployment to focus on commercialising the fibre already laid<\/em>\u201d (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/06\/full-fibre-operator-vx-fiber-pauses-uk-rollout-and-cuts-jobs.html\">here<\/a>). Like many other players in this sector, VX is believed to have been under pressure from rising costs (build, leases etc.), competition from rivals (e.g. overbuild) and the related need to secure a viable level of consumer take-up to help satisfy investors.<\/p>\n<p>Suffice to say that such challenges are a breeding ground for network consolidation, and today&#8217;s development is only the latest of several examples. In 2023 alone we&#8217;ve already seen Fern Trading consolidate four of their full fibre networks, while <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/nexfibre\" target=\"_blank\">Nexfibre<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vm\" rel=\"nofollow\" target=\"_blank\">Virgin Media<\/a> <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/o2uk\" rel=\"nofollow\" target=\"_blank\">O2<\/a>) acquired Upp, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/voneus\" target=\"_blank\">Voneus<\/a> combined Broadway Partners, SWS Broadband and Cadence Networks, and FullFibre Limited has also merged with Digital Infrastructure (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/befibre\" rel=\"nofollow\" target=\"_blank\">BeFibre<\/a>).<\/p>\n<blockquote class=\"bq1\"><p><strong>Neil McArthur, CEO, Freedom Fibre, said:<\/strong><\/p>\n<p>\u201cThis is a strategic merger which leverages the strengths of both Freedom Fibre and VX UK to create a larger, stronger and more diverse business backed by two significant investors with ambitions for growth. We are delighted to be joining forces with the VX team and are hugely excited about the future potential of this newly combined business.\u201d<\/p><\/blockquote>\n<blockquote class=\"bq1\"><p><strong>Damian Stanley, Managing Partner, InfraBridge, said:<\/strong><\/p>\n<p>\u201cThe combination of VX UK and Freedom Fibre, with the backing of our shareholders, brings together two of the UK\u2019s leading altnets into a new, stronger company. Our businesses are highly complementary, including our geographic proximity, the quality of our network build and our retail and wholesale go-to-market strategies, and we now have a platform with the support of <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a> to provide ongoing connections across the enlarged business.\u201d<\/p><\/blockquote>\n<p>Under the deal broadband ISP <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a>, which has been a minority shareholder in Freedom Fibre since 2021, will remain a shareholder in the combined business, and it remains to be seen what this could mean for customers connected via LilaConnect. But for now no further changes or migrations have been announced, with the focus likely to initially be on the technical challenges of bringing both networks together (not an easy task).<\/p>\n<p>The transaction is still subject to regulatory approvals and is expected to close by the end of Q1 2024, but this is likely to be a formality as the deal isn&#8217;t big enough to raise any red flags. Meanwhile VX UK\u2019s parent company, VNEXT AB, headquartered in Sweden, will remain managed by InfraBridge.<\/p>\n<p>VX UK was advised by Houlihan Lokey; Freedom Fibre was advised by Cameron Barney. Weil and Ashurst provided legal advice to InfraBridge and Freedom Fibre, respectively.<\/p>\n<p><strong>UPDATE 9:32am<\/strong><\/p>\n<p>Just to be clear. The new business will operate as Freedom Fibre Limited (FFL), run by Neil McArthur (Freedom Fibre&#8217;s founder and CEO) and the current FFL senior leadership team.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alternative network operator Freedom Fibre has this week confirmed earlier speculation by announcing that they&#8217;ve signed an agreement with InfraBridge-backed VX UK Holdings ltd (VXFIBER) to combine their respective UK full fibre (FTTP) broadband networks &#8211; reflecting a combined total of 285,000 premises passed.<\/p>\n","protected":false},"author":1,"featured_media":29432,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[56],"class_list":["post-36664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-fttp"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/111617590294162931","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - 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