{"id":37433,"date":"2024-03-05T16:49:30","date_gmt":"2024-03-05T16:49:30","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=37433"},"modified":"2024-03-05T18:00:48","modified_gmt":"2024-03-05T18:00:48","slug":"broadband-isp-zzoomm-slows-uk-full-fibre-build-and-warns-of-job-cuts","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2024\/03\/broadband-isp-zzoomm-slows-uk-full-fibre-build-and-warns-of-job-cuts.html","title":{"rendered":"Broadband ISP Zzoomm Slows UK Full Fibre Build and Warns of Job Cuts UPDATE"},"content":{"rendered":"

Oxfordshire-based alternative network provider and ISP Zzoomm<\/a>, which originally aimed to cover 1 million premises with their FTTP<\/a> broadband network across 85 UK towns by the end of 2025, has today notified ISPreview that “new network construction is stopping<\/em>” (some existing work will continue) and redundancies are expected.<\/p>\n

The operator, which is being fuelled by an equity investment of \u00a3100m<\/strong> from Oaktree Capital<\/a> (here<\/a>) and a \u00a3100m<\/strong> debt facility via an international banking consortium (here<\/a>), has generally focused their rollout on smaller towns in parts Berkshire, Oxfordshire, Herefordshire, North Yorkshire, Staffordshire, Wiltshire, West Yorkshire and Cheshire.<\/p>\n

NOTE:<\/strong> On 21st December 2023 the provider revealed that they had already managed to cover 185,000 premises (RFS) across 25 towns (up from 150k on 30th June 2023) and were home to over 20,000 customers (up from 12k at the end of May 2023).<\/div>\n

However, back in May 2023 we noted that Zzoomm<\/a> were reportedly understood to be laying off up to 300 employees in its construction team (here<\/a>), which was said by one newspaper to reflect about 50% of their workforce and would inevitably impact their pace of build.<\/p>\n

The situation is likely to have been fuelled by some of the same challenges that are hitting many other operators, such as rapidly rising build costs, aggressive competition from rivals (e.g. overbuild) and the difficulties of securing fresh investment during a period of high interest rates etc.<\/p>\n

The sad news today is that Zzoomm<\/a> have seemingly notified of more redundancies and the decision has been made to re-focus away from new fibre build, although they will “selectively continue to build on a local case-by-case basis.<\/em>” But the latter only seems likely to be focused on their existing network areas (e.g. infill, customer installs and or ensuring all existing build is made ‘Ready for Service’).<\/p>\n

Zzoomm’s Statement to ISPreview<\/strong><\/p>\n

“You may have seen that Zzoomm\u2019s new network construction is stopping and as such we are making changes to our organisation, which unfortunately means that some of our colleagues in our network construction and support areas will be leaving.<\/p>\n

We will selectively continue to build on a local case-by-case basis and continue to release many more homes where new customers can experience our service.<\/p>\n

Zzoomm continue to invest adding new people in the marketing, sales, customer service and field service functions to support the continued rapid growth in happy customers.”<\/p><\/blockquote>\n

Despite the obvious challenges, Zzoomm remains confident about the future and is pleased with the customer growth they’re seeing (it’s growing by around 1.5% penetration each month). Suffice to say that the operator is choosing to play it safe and focus on growing take-up rather than rapid network expansion, which is likely to continue until such time as they’re able to raise fresh investment, assuming consolidation doesn’t bite first.<\/p>\n

The catch is that you can’t slow a build without inevitably cutting some jobs, and this would appear to be the second such batch of redundancies since last year. We have asked Zzoomm if they can clarify how many staff are likely to be affected and will report back when there’s a response.<\/p>\n

Customers who take their 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 \u00a364.95 if you want their top 2Gbps tier. The ISP is also offering a \u00a3100 Amazon<\/a> gift card to new customers.<\/p>\n

UPDATE 5:59pm<\/strong><\/p>\n

Zzoomm has kindly informed us that they’ve now got just over 23,000 customers and a little over 190,000 premises passed (RFS).<\/p>\n","protected":false},"excerpt":{"rendered":"

Oxfordshire-based alternative network provider and ISP Zzoomm, which originally aimed to cover 1 million premises with their FTTP broadband network across 85 UK towns by the end of 2025, has today notified ISPreview that “new network construction is stopping” (some existing work will continue) and redundancies are expected.<\/p>\n","protected":false},"author":1,"featured_media":31794,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[56,1867],"class_list":["post-37433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-fttp","tag-zzoomm"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/112044112126017097","error":""},"yoast_head":"\nBroadband ISP Zzoomm Slows UK Full Fibre Build and Warns of Job Cuts UPDATE - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Oxfordshire-based alternative network provider and ISP Zzoomm, which originally aimed to cover 1 million premises with their FTTP broadband network across\" \/>\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\/2024\/03\/broadband-isp-zzoomm-slows-uk-full-fibre-build-and-warns-of-job-cuts.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Broadband ISP Zzoomm Slows UK Full Fibre Build and Warns of Job Cuts UPDATE - 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