{"id":41603,"date":"2025-05-01T09:00:48","date_gmt":"2025-05-01T08:00:48","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=41603"},"modified":"2025-05-01T09:07:41","modified_gmt":"2025-05-01T08:07:41","slug":"neos-networks-claim-96-percent-of-uk-broadband-altnets-consider-consolidation","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2025\/05\/neos-networks-claim-96-percent-of-uk-broadband-altnets-consider-consolidation.html","title":{"rendered":"Neos Networks Claim 96 Percent of UK Broadband Altnets Consider Consolidation"},"content":{"rendered":"

Neos Networks<\/a>, which operates one of the biggest 34,000km long business fibre networks in the UK \u2013 spanning 550 exchanges, 90+ data centres and 600+ Points of Presence (PoPs), has today released the results of new research that claims almost all of the market’s alternative networks (96%) are considering mergers, partnerships and acquisitions with other providers.<\/p>\n

As our regular readers will already know, most alternative broadband networks (altnets) across the market are currently looking at consolidation as a way of balancing against the difficult market conditions that have arisen over the past 2-3 years. Much of the latter has been driven by high interest rates, rising build costs and strong competition – all of which is making it hard to raise fresh investment.<\/p>\n

In fact, we’ve already seen quite a few sizeable consolidation agreements taking place (e.g. Netomnia<\/a> + Brsk and CityFibre<\/a> + Lit Fibre etc.), and many industry observers expect the current crop of c.100 altnets to shrink down into a market dominated by just a handful of players over the coming years.<\/p>\n

On the flip side, providers that have yet to consolidate are often switching their strategies from network build to greater commercialisation, which means putting more effort into growing their customer base rather than the reach of their physical underlying fibre optic infrastructure. The downside of this is that it often results in job cuts, which also has a knock-on impact for civil engineering firms (contractors).<\/p>\n

The new Censuswide survey, which involved 100 Senior Decision Makers at UK-based altnets, helps to underline the current situation by highlighting some of the hurdles that many such networks face. When asked about acquiring customers, 55% said their target customers are “locked into pre-existing contacts<\/em>“. This was followed by a lack of awareness (47%), with many altnets facing competition with up to 4 other providers in regions where they have networks.<\/p>\n

Key Findings from Neos’ Altnets Survey<\/strong><\/span><\/p>\n

\u27a4 48% of those surveyed said it has been difficult to access funding over the past year. High interest rates are exacerbating this challenge, with 48% of altnets citing them as the primary reason behind their struggle for funding. Regulatory constraints and strict lending criteria were also cited as significant barriers.<\/p>\n

\u27a4 98% said they expect to move beyond just offering traditional residential broadband to broaden their services and appeal. This was also cited as the number one long-term ambition for Altnets in the survey.<\/p>\n

– 46% say they plan to launch smart home technology<\/p>\n

– 43% say they will offer enterprise connectivity<\/p>\n

– 42% say they will launch security solutions and packages<\/p>\n

– 35% say will start offering multi-service solutions \u2013 i.e. TV and entertainment<\/p>\n

\u27a4 55% said that improving customer satisfaction is their primary goal for the next few years, beating out other, more revenue-critical operations like increasing customer subscriptions and driving operational efficiencies.<\/p>\n

\u27a4 When asked what technologies they were using to help them differentiate themselves from their competitors, the majority of respondents said they were deploying Software-Defined Networking (SDN) and Network Function Virtualisation (53%). 5G<\/a> Fixed Wireless Access (39%), and AI\/ML enabled BSS\/BSS automation also ranked highly.<\/p><\/blockquote>\n

Altnets also face other regulatory challenges, including the knock-on impact of Openreach<\/a> \/ BT<\/a>’s closure of its copper network as it transitions to full fibre. As part of this modernisation, most Altnets are now under pressure to remove equipment from old exchanges (here<\/a>). They say it will cost them, on average, \u00a31.4m, according to the research.<\/p>\n

Lee Myall, CEO at Neos Networks<\/a>, said:<\/strong><\/p>\n

“Altnets have played a pivotal role in reshaping the UK’s connectivity landscape, driving the expansion of full-fibre networks and challenging established incumbents. However, the industry now stands at a crucial crossroads. Heightened competition, financial pressures, and shifting regulatory frameworks mean that Altnets must evolve rapidly to secure their long-term future.<\/p>\n

Our research highlights that Altnets are exploring a variety of strategies – from mergers and acquisitions to strategic partnerships and service diversification – to strengthen their market position and pave the way for sustainable growth.”<\/p><\/blockquote>\n

However, we’ve so far only tended to see more of a gradual stream of consolidation, rather than the expected flood. This suggests that it might take longer than expected for the market to consolidate toward a handful of larger players. In amongst all that, we may also see the odd failure, but the limited level of overbuild between altnets suggests that such a negative outcome could be rare.<\/p>\n

Naturally, Neos Network has a vested interest in this market, particularly with respect to helping altnets diversify their product offerings and supporting network capacity.<\/p>\n","protected":false},"excerpt":{"rendered":"

Neos Networks, which operates one of the biggest 34,000km long business fibre networks in the UK \u2013 spanning 550 exchanges, 90+ data centres and 600+ Points of Presence (PoPs), has today released the results of new research that claims almost all of the market’s alternative networks (96%) are considering mergers, partnerships and acquisitions with other […]<\/p>\n","protected":false},"author":1,"featured_media":32543,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,56,34],"class_list":["post-41603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-fttp","tag-statistics"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/114431528237516151","error":""},"yoast_head":"\nNeos Networks Claim 96 Percent of UK Broadband Altnets Consider Consolidation - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Neos Networks, which operates one of the biggest 34,000km long business fibre networks in the UK \u2013 spanning 550 exchanges, 90+ data centres and 600+\" \/>\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\/2025\/05\/neos-networks-claim-96-percent-of-uk-broadband-altnets-consider-consolidation.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Neos Networks Claim 96 Percent of UK Broadband Altnets Consider Consolidation - 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