{"id":39504,"date":"2025-01-06T00:01:14","date_gmt":"2025-01-06T00:01:14","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=39504"},"modified":"2025-01-06T06:32:28","modified_gmt":"2025-01-06T06:32:28","slug":"allpoints-fibre-ceo-on-becoming-the-uber-of-the-uks-full-fibre-wholesale-market","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2025\/01\/allpoints-fibre-ceo-on-becoming-the-uber-of-the-uks-full-fibre-wholesale-market.html","title":{"rendered":"AllPoints Fibre CEO on Becoming the UBER of the UK’s Full Fibre Wholesale Market"},"content":{"rendered":"

The CEO of alternative network operator AllPoints Fibre<\/a> (APFN \/ Fern Trading), Jarlath Finnegan, has today told ISPreview – in a new interview – of his ambition for the company to become the “UBER of the full fibre wholesale market<\/em>“, which reflects their desire to help “accelerate<\/em>” the delivery of related UK broadband services over the next few years.<\/p>\n

In case anybody has forgotten, AllPoints Fibre Networks was officially formed between 2023 and 2024 from the consolidation of three alternative broadband networks and ISPs (here<\/a> and here<\/a>), including Giganet, Swish Fibre<\/a> and Jurassic Fibre. All of the companies were backed by Fern Trading<\/strong> and had previously been deploying FTTP<\/a> networks to premises across different parts of the UK.<\/p>\n

NOTE:<\/strong> Jarlath Finnegan was one of the original founder’s and investors in Giganet, but in February 2023 he became Group CEO as a result of Fern’s FTTP<\/a> network consolidation.<\/div>\n

The consolidation occured against the backdrop of a market under growing strain from various challenges, such as rising build costs (inc. high interest rates), network overbuild and competition. Such strains had already put pressure on Fern’s various altnets and consolidation was seen as part of their strategy for creating a more efficient, flexible and diverse network.<\/p>\n

The outcome saw APFN take on the role of a single national wholesale network for all of the aforementioned fibre operators, while UK ISP Cuckoo<\/strong><\/a> became the main outlet for all their retail customers. Since then APFN has also acquired another retail ISP in the shape of Glasgow-based full fibre ISP Brillband<\/a><\/strong> (here<\/a>), which isn’t touched on in this interview because we conducted it just before that announcement.<\/p>\n

However, just to be clear, while APFN has previously talked about harbouring post-consolidation plans to \u201caccelerate full fibre delivery over the next five years<\/em>\u201d. Jarlath makes clear that the focus here is no longer on driving new network build. Instead, the operator is developing a wholesale offering that has a wider reach, which includes onboarding new networks and providing ISPs with access to operators that were once rivals (e.g. Openreach<\/a>, CityFibre<\/a> etc.).<\/p>\n

“Think of us as the UBER of the full fibre wholesale market<\/em>,” said Jarlath. “We are absolutely pushing to accelerate full fibre delivery. But this is not a build strategy: we are a wholesaler offering amazing service experiences to our customers<\/em>.”<\/p>\n

In the following interview, Jarlath also remarks that it would be “crazy for the Government to use [gigabit broadband] vouchers in urban areas<\/em>” (these are currently limited to rural areas), while also saying that he’s “broadly happy with the current [markets] regulatory framework and would like to see it maintained<\/em>“. On top of that he calls for altnets to “avoid under-pricing full fibre into which billions has been invested in a dash for customer numbers<\/em>.”<\/p>\n

The APFN Interview<\/strong><\/span><\/h3>\n

1. I think it’s fair to say that APFN has had a busy couple of years, not least with the effort to consolidate the full fibre broadband networks of Giganet, Jurassic Fibre, and Swish Fibre under a single infrastructure brand, while at the same time splitting the retail bases of those providers out to Cuckoo<\/a>. Has this consolidation drive now fully completed, and what did you find to be the biggest challenge in the process?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

In February 2023 we began the journey to extract all the best parts of each of the individual investments and create our national full fibre platform \u2018aquila\u2019, but more about that later. We wanted to rip up the rule book in the way full fibre services are delivered across the UK without having to build or buy to every premise. Think of us as the UBER of the full fibre wholesale market. We strongly believe the best way to challenge the market is to prove that our platform delivers, so we needed a customer with the same mindset and who better to work with initially than Cuckoo<\/a>, who deliver fast, fair, feel-good broadband.<\/p>\n

APFN is now supporting Cuckoo<\/a> in their migration off legacy brands and networks, and they will be one of the first customers to benefit from the APFN aquila platform. We\u2019re really excited to onboard further ISPs and Partners in the coming months who will have the advantage of our disruptive, seamless platform.<\/p><\/blockquote>\n

2. Prior to the consolidation, we had an incomplete idea of how much network coverage had been delivered by the aforementioned networks (premises passed \/ RFS) or how many customers they’d managed to acquire. Are you now in a position to share such details?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

aquila is network agnostic and currently offers access to 18m homes. This is increasing each quarter as our network partners continue to deliver new homes and business. We have also lit up and cut over onto our aquila national backbone network which we know is currently the fastest, most resilient way to traverse the UK. Our aquila edge network deployment is underway which means we will deliver amazing service experiences every time. We\u2019re confident that the experience we\u2019ll provide isn\u2019t just better than our competitors; it\u2019s unique.<\/p><\/blockquote>\n

ISPr Editors NOTE:<\/strong> The figure of 18 million given above includes networks that AFPN haven’t built themselves, such as Openreach<\/a> and CityFibre<\/a>, which is not what we were asking about. The latest November 2024 data provided to ISPreview by Thinkbroadband<\/a> suggests that the former networks of Giganet, Jurassic Fibre and Swish Fibre cover somewhere around 295,000 premises (Ready for Service).<\/div>\n

3. APFN has previously indicated that, with the consolidation out of the way, they would push to \u201caccelerate full fibre delivery over the next five years<\/em>\u201d. But the current environment has proven to be extremely challenging for many alternative networks, due to high build costs, strong competition and the difficulties of trying to raise fresh investment during a period of high interest rates.<\/strong><\/p>\n

Sadly, challenges like this have caused some operators to make redundancies and scale-back their network builds, which is something that we recall has affected APFN’s networks in the recent past too. Given all of this, can you possibly offer a bit more detail about what APFN’s actual network roll-out plans are for the next year or so, or is the strategy now one that is more focused upon growing customer take-up (commercialisation)?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

We are absolutely pushing to accelerate full fibre delivery. But this is not a build strategy: we are a wholesaler offering amazing service experiences to our customers. Our strategy to develop aquila was based on the needs of B2C and B2B ISPs. We aim to raise the standard in the market in partnership with our network partners CityFibre<\/a> and Openreach<\/a>, and our own APFN network. We have also made aquila network agnostic, so this allows us to get to an individual premise in the most cost-effective way and so we continue to assess the market opportunities. Enabling our customers to increase take up with the lowest cost to serve is where our focus is.<\/p>\n

We work, day in day out, with our partners (which includes our own APFN network team) to push the boundaries of what is possible in this area as we believe in competition which will ultimately benefit the consumer. However, we do not support excessive overbuild as it\u2019s a poor use of capital and will impact the attractiveness of the sector.<\/p><\/blockquote>\n

4. In a climate where consolidation seems to have become the talk of the town. Does APFN see itself more as being an attractive prospect for being consolidated by a bigger fish, or are you likely to focus on remaining independent, while potentially raising fresh investment as interest rates come down – perhaps even doing a little consolidation of your own?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

It’s clear the market will consolidate but there will be different levels on how this happens across assets and customers. It\u2019s inevitable that some of the fibre investments that have been made will fail, but we have seen some good examples of what is possible. For example, I was interested to see the announcement of the recent CityFibre \/ Lit Fibre deal, with the ISP going back to the founders. This is really good business for all, including the end consumer. We will always be active in the market but like aquila it must be something different with realistic expectations. This is a long but exciting game!<\/p><\/blockquote>\n

5. The country recently welcomed a new government, which over the past few months has been sending some mixed signals. On the one hand we’ve seen various tax rises in the budget (increasing costs in certain areas), while on the other there’s been talk about making a \u201crenewed push to fulfil the ambition of full gigabit and national 5G<\/a> coverage by 2030<\/em>\u201d and unblocking planning.<\/strong><\/p>\n

How do you think the new government is doing, with respect to supporting altnets like APFN on this front, and what more would you like to see them do?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

When a government wins a landslide, expectations are always high across the board that they will bring in sweeping positive change, for everyone. And of course, we know that, with every decision a government makes, there must be winners and losers. The recent budget is certainly a case in point in that regard.<\/p>\n

We will always want the government to do more but at the end of the day it\u2019s business that creates jobs and wealth, so we must get on with it and they can hopefully support us. But we will always need to move first.<\/p>\n

We have been talking about 5G<\/a> for a long time now and when you compare it to the fibre roll out it hasn\u2019t kept up. In the early stages of the fibre rollout, the industry set to work and just got on with the task in hand of building out, but we are not done yet and now we need to push for ubiquitous coverage which will need both fixed and wireless over the next 7 to 10 years along with government support to ensure the digital economy can thrive. Look at what we have achieved in 5 years!<\/p><\/blockquote>\n

Please flick over to Page 2 in order to finish reading the interview.<\/p>\n

<\/p>\n

6. Speaking of the new government, we’ve recently seen a lot of talk about some of the remaining funding for the \u00a35bn Project Gigabit broadband roll-out potentially being directed to help fill in some of the slowspots and notspots for coverage that exist in urban areas (previously the scheme has been laser focused on rural areas).<\/strong><\/p>\n

The expectation is that this may be used to support an expanded Gigabit Broadband Voucher Scheme<\/a> (GBVS). Give that APFN serves a mix of semi-urban and rural areas, what are your thoughts on this and do you think Project Gigabit’s funding should remain ring-fenced for use in poorly served rural areas?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

It would be crazy for the Government to use vouchers in urban areas to solve wayleaves issues for example. We need them to simplify the wayleave process. It should be mandatory that, by 2030, fibre is in every MDU in the UK, in the same way every property must have electricity.<\/p>\n

We are starting to see Project Gigabit homes being delivered, so well done to the successful bidders on these contracts. These are by no means an easy delivery. If I look across the sea to my home country of Ireland and see what they are achieving on the National Broadband rollout, it\u2019s fantastic. It took a long time to award the contracts, but it has certainly been worth the wait. My friends and family can now choose where to live and work, rural economies have been strengthened and urban areas have less pressures on services, schools and hospitals. We need to learn from that nearby example of government and private investment working together and see how we can apply that to reach as close to 100% coverage as possible through Project Gigabit.<\/p><\/blockquote>\n

7. How Openreach, as an operator with significant market power (SMP), chooses to price their own FTTP<\/a> broadband services – at wholesale – has often been a point of contention for altnets, particularly given the economic and competitive challenges of the current market.<\/strong><\/p>\n

In that sense, how does INCA view Katie Milligan’s (Openreach CCO) recent pledge not to initiate a further round of Equinox (3) discounts on FTTP “until at least 31st March 2026<\/em>” and what do you think Ofcom<\/a> needs to do, if anything?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

Openreach has delivered 17m premises to date and continue to deliver a million a quarter currently. Hats off to Clive and team – this is impressive stuff! We need this as otherwise large parts of the country will miss out on the once-in-a-generation new technology that is fibre. aquila needs fibre premises and we are agnostic to where they come from, but for national coverage we approach this question differently from others in the marketplace. Whilst the last market review was not perfect, it did provide investors with the certainty that they needed. Broadly speaking, we are hoping that the current framework continues in the next market review period.<\/p><\/blockquote>\n

8. As above, we can’t speak about Openreach’s wholesale pricing for FTTP without also touching on the wider issues in Ofcom<\/a>’s next major Telecoms Access Review 2026 (TAR), which will look to make changes that \u201cpromote competition and investment<\/em>\u201d in gigabit broadband and business connectivity.<\/strong><\/p>\n

What are the other top changes or issues that you’d like to see the regulator tackle in this review in order to help unlock and support altnets like APFN? This is a particularly tricky one given the challenge of making big changes in an environment where rising competition may actually give Ofcom<\/a> more reason to soften regulation against the incumbent, Openreach, rather than harden it.<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

We are broadly happy with the current regulatory framework and would like to see it maintained to give the market predictability and certainty.<\/p>\n

One area that we feel Ofcom should look at is reinforcing competition at the point of copper-to-fibre switchover. We believe Ofcom should require ISPs who are forcibly migrating customers over to a full fibre network to send them a type of End of Contract Notification (ECN), should they wish to switch provider. They should also waive any Early Termination Charges if the customer wants to make that switch. At this stage it\u2019s ridiculous that forced migrations from copper to fibre happen!<\/p><\/blockquote>\n

9. Over the past year there’s been a lot of talk about fostering greater infrastructure sharing between non-Openreach networks. For example, INCA has set up a new Infrastructure Sharing Group (ISG), which is attempting to encourage altnets to work together and foster more infrastructure sharing.<\/strong><\/p>\n

In theory, this could boost the roll-out of gigabit broadband and reduce the dependence upon Openreach’s existing cable ducts and poles to run new fibre, while also cutting some costs and reducing friction with some communities (e.g. those residents that don’t like duplication or deployment of certain street works and infrastructure, such as poles etc.).<\/strong><\/p>\n

However, getting so many competitive networks – with infrastructure investments they want to protect – to work together can also be a bit like trying to herd cats. Finding that balance between creating a solution \/ agreement that is affordable (i.e. attractive and fair enough for operators to want to use) and which, at the same time, doesn’t devalue the physical asset, has historically been very difficult – often needing regulation to resolve.<\/strong><\/p>\n

What are your thoughts on this effort, and what is needed to make it workable?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

The PIA model has been a success. Of course we will always push for better PIA pricing, but it does what it says on the tin. The government and the regulator should focus on making PIA as good and cost-effective as it can be, rather than trying to \u2018herd cats\u2019 as you put it!<\/p><\/blockquote>\n

10. One of the biggest challenges for altnets and ISPs to tackle this year has been the problematic introduction of Ofcom’s new One Touch Switching (OTS) system via the industry-led One Touch Switching Company (TOTSCo), which aims to make it quicker and easier for consumers to switch between broadband ISPs and phone providers on physically separate networks.<\/strong><\/p>\n

On the one hand, the fact that OTS is making switching easier is something that could help to boost the take-up of often faster and more competitively priced altnets and related ISPs. But on the other hand, getting the TOTSCo platform to work properly and ensuring that all ISPs use it is still something of an ongoing challenge. What are your thoughts on the troubled development of this process, in terms of what it got right and what it might have got wrong, and is APFN happy with it?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

Cuckoo was ready well in advance of OTS go live and we are confident that OTS can bring exciting opportunities for disruptive ISPs. We don\u2019t like looking back so well done to TOTSCo for getting it up and running, and we expect the iterations to be rapid to improve matching rates. We would also encourage TOTSCo to do some publicity as well!<\/p><\/blockquote>\n

11. Improving consumer take-up is a key focus for altnets, not least as it helps to prove their business case and keep investors happy (as well as potentially attracting new investment). But what more do you think altnets, or the wider industry (beyond what we’ve already discussed above), need to do on this front to generate better adoption?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

My advice to altnets is to avoid under-pricing full fibre into which billions has been invested in a dash for customer numbers. They also need to ensure local communities understand that they\u2019re getting a local service. Over and above that, they need to give customers something they aren\u2019t getting from their current provider.<\/p>\n

Lots of the pricing in the market is totally undervaluing the product but also the return against the cost to build so it\u2019s not sustainable. If your only USP is price, then you are going to struggle to make any business plan work. Customer acquisition costs are in some cohorts as expensive as building by the time you have installed and supplied in-home equipment, so you must excite the customer with your proposition if you want to keep them at a fair price.<\/p><\/blockquote>\n

12. I wanted to also touch on some interesting developments over at Virgin Media<\/a>, which will in 2025 be opening up their existing network to wholesale via a new NetCo entity. This is obviously occurring at the same time as some of the company’s shared parents are backing Nexfibre<\/a>, which is separately rolling out FTTP to areas that Virgin Media<\/a> haven’t covered before, albeit while using Virgin’s existing build engine.<\/strong><\/p>\n

In the future we might well see both networks coming together as one, which is how many observers already view them. But what do you think this might mean for the current regulatory environment and competition, with respect to altnets like APFN, and how do you think Ofcom should respond?<\/strong><\/p>\n

For example, would Virgin Media<\/a> + nexfibre<\/a> also have significant market power, or does the addition of such a major player simply give Ofcom more reason to soften overall market regulation on Openreach.<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

aquila loves networks that offer service, coverage and competitive pricing. Nexfibre<\/a> has ambitious plans and has already delivered impressive numbers. It certainly would be realistic to expect the Liberty Global family to deliver a national wholesale proposition in the UK so we will keep a watching brief here as the scale for us is interesting.<\/p><\/blockquote>\n

13. Finally, Openreach are currently preparing to close roughly 4,600 of their old legacy exchanges across the UK, which will ultimately leave around 1,000 exchanges \u2013 the Openreach Handover Points (OHPs) \u2013 that are primarily used to provide nationwide coverage of modern \u201cfibre\u201d based broadband and other services (FTTC<\/a>, FTTP etc.). The first c.100 of these are due to be closed by 2030 as part of an initial pilot phase, but most of the rest will follow during the 2030s.<\/strong><\/p>\n

However, this change creates somewhat of a thorny issue for alternative networks around Ethernet, Inter-Exchange Dark Fibre (DFX), Co-Location and PIA (access to existing cable ducts and poles) services, which are still supplied by some of the \u201cold\u201d exchanges. The costs for at least some AltNet\u2019s of adapting to this could be more than trivial, and Openreach has long been consulting with the industry on how to balance all this.<\/strong><\/p>\n

How much of an impact is the Exchange Exit Programme likely to have on your network, if any, and are there any areas of Openreach’s approach to this that still need improvement?<\/strong><\/p>\n

Jarlath Finnegan said:<\/strong><\/span><\/p>\n

Back at the beginning of the Fibre Investments we made the strategic decision to only locate in the enduring exchanges because we recognised up front that the cost, business distraction and customer interruption borne out of the mandatory migrations would be substantial, so, thankfully, nothing for us to worry about here. We are big supporters of the PIA and DFX remedies and want to see these remedies maintained and, if possible, improved in the next market review.<\/p><\/blockquote>\n

We’d like to thank Jarlath for taking the time to respond to our questions and to wish him a Happy New Year for 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"

The CEO of alternative network operator AllPoints Fibre (APFN \/ Fern Trading), Jarlath Finnegan, has today told ISPreview – in a new interview – of his ambition for the company to become the “UBER of the full fibre wholesale market“, which reflects their desire to help “accelerate” the delivery of related UK broadband services over […]<\/p>\n","protected":false},"author":1,"featured_media":40124,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[2716,1],"tags":[472,56,2146],"class_list":["post-39504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interviews","category-uk_isp_news","tag-business","tag-fttp","tag-giganet"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/113778476727250799","error":""},"yoast_head":"\nAllPoints Fibre CEO on Becoming the UBER of the UK's Full Fibre Wholesale Market - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The CEO of alternative network operator AllPoints Fibre (APFN \/ Fern Trading), Jarlath Finnegan, has today told ISPreview - 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