{"id":36914,"date":"2024-01-19T15:52:04","date_gmt":"2024-01-19T15:52:04","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=36914"},"modified":"2024-02-15T07:02:13","modified_gmt":"2024-02-15T07:02:13","slug":"airband-restructuring-puts-pressure-on-jobs-and-uk-fibre-build","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2024\/01\/airband-restructuring-puts-pressure-on-jobs-and-uk-fibre-build.html","title":{"rendered":"Airband Restructuring Puts Pressure on Jobs and UK Fibre Build"},"content":{"rendered":"<p>Broadband ISP and network builder <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/airband\" rel=\"nofollow\" target=\"_blank\">Airband<\/a>, which originally aimed to cover 600,000 UK premises in rural areas via a mix of their wireless (FWA) and full fibre (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a>) networks by the end of 2025, has revealed that it&#8217;s going through a &#8220;<em>period of restructuring<\/em>&#8221; after claims of redundancies and build pauses surfaced.<!--more--><\/p>\n<p>The provider is currently owned by <strong>Aberdeen Standard Investments<\/strong> (ASI), which acquired a majority stake in November 2020, and in 2021 the company was also successful in securing a <strong>\u00a3100m<\/strong> debt package from an international banking consortium (HSBC, Lloyds, Nord LB and Sabadell). Since then they&#8217;ve continued to expand their network across various parts of the country, particularly around Devon, Somerset, Shropshire, Oxford and other places.<\/p>\n<p><a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/airband\" rel=\"nofollow\" target=\"_blank\">Airband<\/a> is also known to have secured a number of state-aid supported rollout contracts, such as via the <a href=\"http:\/\/www.connectingdevonandsomerset.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Connecting Devon and Somerset<\/a> (CDS) and <a href=\"http:\/\/connectingshropshire.co.uk\" target=\"_blank\" rel=\"noopener noreferrer\">Connecting Shropshire<\/a> programmes in England. But like so many other alternative network operators in the market right now, they&#8217;re not immune to the wider pressures, such as rising built costs, competition from rivals and the difficulties of securing fresh investment in a high interest rate environment.<\/p>\n<p>The challenges were underlined in June 2023 after Sky News reported that the company required a \u201c<em>substantial injection of new capital<\/em>\u201d (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/06\/rural-uk-full-fibre-isp-airband-reportedly-seeking-new-funding.html\">here<\/a>). According to that report, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/airband\" rel=\"nofollow\" target=\"_blank\">Airband<\/a> had hired restructuring firms AlixPartners and Houlihan Lokey to help find additional funding amid difficult conditions. Shortly after that, we noted <strong> Amber Infrastructure<\/strong> had sold its minority stake in the business (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/07\/amber-infrastructure-sells-stake-in-uk-broadband-isp-airband.html\">here<\/a>).<\/p>\n<p>Since then there haven&#8217;t been any new developments, but that started to change this month as we began to receive reports &#8211; from various sources &#8211; alleging that the operator was making redundancies and pausing new builds. We queried whether this was indeed the case and received the following statement.<\/p>\n<blockquote class=\"bq1\"><p><strong>A spokesperson for Airband said today:<\/strong><\/p>\n<p>\u201cAirband Community Internet is going through a period of restructuring following a detailed review of its business strategy, to focus on maximising its current assets.<\/p>\n<p>This is a live process and as such we are not able to comment any further at this time.<\/p>\n<p>More information will be shared in the coming weeks if and when appropriate.\u201d<\/p><\/blockquote>\n<p>At this stage it remains unclear precisely what the outcome of this restructuring will be. But other operators in a similar situation have, over the past year, already moved to slow their network deployments (usually resulting in job losses) and switched their focus toward growing take-up to ensure some future stability. Such moves are a prudent course of action in the current climate.<\/p>\n<p>Furthermore, a number of industry sources and other indications have suggested to ISPreview that <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/gigaclear\" rel=\"nofollow\" target=\"_blank\">Gigaclear<\/a> may be exploring the possibility of a tie-up with Airband, although precisely what form this might take (sale, merger, wholesale agreement etc.), or indeed whether it results in any outcome at all, remains open to speculation.<\/p>\n<p>A spokesperson for <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/gigaclear\" rel=\"nofollow\" target=\"_blank\">Gigaclear<\/a> told ISPreview that they had &#8220;<em>no comment<\/em>&#8221; on the report, while Airband told ISPreview that there is currently &#8220;<em>no imminent merger with <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/gigaclear\" rel=\"nofollow\" target=\"_blank\">Gigaclear<\/a> or anyone else<\/em>&#8221; on the cards. But Airband declined to comment further when we queried if this would be the case over a wider timescale, which isn&#8217;t surprising given how fluid and uncertain the market is right now (a lot of operators are engaged in talks).<\/p>\n<p>In theory, Gigaclear&#8217;s recently secured debt facility (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/12\/rural-uk-broadband-isp-gigaclear-secure-1-5bn-debt-facility.html\">here<\/a>) &#8211; worth \u00a31.5bn &#8211; gives them a significant war chest, which makes more sense if they&#8217;re planning to secure some key Project Gigabit contractors or use it on strategic M&amp;A (mergers) activity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Broadband ISP and network builder Airband, which originally aimed to cover 600,000 UK premises in rural areas via a mix of their wireless (FWA) and full fibre (FTTP) networks by the end of 2025, has revealed that it&#8217;s going through a &#8220;period of restructuring&#8221; after claims of redundancies and build pauses surfaced.<\/p>\n","protected":false},"author":1,"featured_media":33986,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,56,416,476],"class_list":["post-36914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-fttp","tag-gigaclear","tag-wifi"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/111783420012866128","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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