{"id":47848,"date":"2026-08-27T08:11:03","date_gmt":"2026-08-27T07:11:03","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=47848"},"modified":"2026-08-27T11:28:43","modified_gmt":"2026-08-27T10:28:43","slug":"conflict-of-interest-over-gigaclears-wholesale-broadband-sees-two-uk-isps-exit","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2026\/08\/conflict-of-interest-over-gigaclears-wholesale-broadband-sees-two-uk-isps-exit.html","title":{"rendered":"Conflict of Interest Over Gigaclear’s Wholesale Broadband Sees Two UK ISPs Exit"},"content":{"rendered":"

A new report has revealed that two UK broadband ISPs, Exascale<\/a> and Squirrel Internet<\/a>, have recently decided to stop selling access to Gigaclear<\/a>’s alternative full fibre network. The move occurred due to what appears to be a conflict of interest over how the altnet treats their wholesale partners when compared with their own direct retail customers.<\/p>\n

Quite a few developments occur behind the scenes of the UK’s broadband industry, some of which are well-known but rarely receive much attention or see the light of day. One of those reflects the complex and sometimes challenging relationships that vertically integrated broadband operators (i.e. those that have built their own physical network and also act as a retail provider) often have with their other retail ISP partners.<\/p>\n

NOTE:<\/strong> Gigaclear<\/a> has so far built their full fibre (FTTP<\/a>) network out to cover 618,000 premises in rural parts of England (inc. 170,000 customers) and continues to deploy several publicly subsidised Project Gigabit contracts for Oxfordshire (here<\/a>) and East Gloucestershire (here<\/a>). Control of the company passed to its lenders in April 2026 (here<\/a> and here<\/a>), reflecting a consortium of ABN AMRO, Natwest and the UK\u2019s National Wealth Fund (NWF).<\/div>\n

The classic market dilemma is that vertically integrated providers are often perceived as being naturally incentivised to give preference to their own retail brand over that of other third-party retail ISP partners, which is perhaps somewhat to be expected (you’ve built the network with your own cash, so you get to set the rules).<\/p>\n

However, the situation can become more complex when an operator, such as Gigaclear<\/a>, has accepted significant amounts of public funding to help construct their network. In this case, the Government’s Building Digital UK<\/a> (BDUK) agency typically attaches a requirement for network operators to provide wholesale access across their network “without limitation under fair and non-discriminatory conditions<\/em>” (here<\/a>).<\/p>\n

The problem, as well illustrated by Thinkbroadband’s summary<\/a> this morning, is that the wholesale provider doesn’t always appear to do precisely as the rules suggest they perhaps should. On the other hand, BDUK’s rules on this aren’t super descriptive (i.e. they’re not comparable to the strict and detailed regulatory requirements that Ofcom<\/a> places on market incumbent Openreach<\/a>), which perhaps leaves room for some flexibility of interpretation.<\/p>\n

A spokesperson for Squirrel Internet said:<\/strong><\/p>\n

“Customers choosing to switch from Gigaclear over to Squirrel have been consistently retained by Gigaclear with retentions deals that are vastly below wholesale cost. This was generating significant work load for the team taking and cancelling orders from prospective customers. There have even been incidences of Gigaclear\u2019s retention team telling customers to cancel [whose] switch was complete within the cooling off period, which then leads to an early termination charges from Gigaclear to us.<\/p>\n

The issues have been discussed many times with Gigaclear over the years and there seems little interest or willingness to make any changes to allow wholesale partners to gain customers on the network.<\/p>\n

As such unfortunately we have made the decision to focus working with network partners that have a genuine willingness to work together to drive uptake on their networks.”<\/p><\/blockquote>\n

In fairness to Gigaclear, plenty of other broadband providers, particularly the largest players, do often play the retentions game when existing customers decide to switch to a different ISP. The situation can sometimes result in the losing ISP making a last-ditch offer (discount) to try and retain that customer. But Gigaclear’s approach to this, particularly when it involves their own wholesale partners and allegedly offering deals that undercut the wholesale price that partner ISPs have to pay, is what creates the conflict of interest.<\/p>\n

We should say that none of this is new within the industry and, as Squirrel points out, such issues have been going on for several years. As mentioned earlier, we’ve seen it happening with other vertically integrated providers too, but crucially most such operators do still manage to find a fair balance. In this case the relationship ended up breaking down, which in practice means that Squirrel will continue to support their existing customers on Gigaclear, but will not be taking on any new subscribers via that network.<\/p>\n

ISPreview understands that Exascale ran into similar frustrations and also called time on their relationship with Gigaclear. In the case of other vertically integrated network operators with BDUK contracts under their belt, the alternative strategy we’ve seen is for a network operator to offer wholesale products on terms that simply aren’t attractive enough for many partner ISPs to want to sell them (i.e. it ends up being used as a check-box exercise to satisfy BDUK).<\/p>\n

The above helps to explain why wholesale-only network operators tend to be more attractive to retail ISPs, as this removes the inherent potential for such conflicts of interest. Still, quite a few altnets went the vertically integrated route as a means of protecting their investment and being able to grow their customer base, without first having to wait for the initial uncertainty of needing to build a pool of supporting retail ISPs.<\/p>\n

For its part, Gigaclear continues to have a pool of supporting retail ISPs<\/a> and did not provide a comment for TBB’s article (we’ve also asked). Overall, depending upon your perspective, it’s possible to understand both sides of the argument.<\/p>\n","protected":false},"excerpt":{"rendered":"

A new report has revealed that two UK broadband ISPs, Exascale and Squirrel Internet, have recently decided to stop selling access to Gigaclear’s alternative full fibre network. The move occurred due to what appears to be a conflict of interest over how the altnet treats their wholesale partners when compared with their own direct retail […]<\/p>\n","protected":false},"author":1,"featured_media":34526,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[56,416],"class_list":["post-47848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-fttp","tag-gigaclear"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/117166228399882286","error":""},"yoast_head":"\nConflict of Interest Over Gigaclear's Wholesale Broadband Sees Two UK ISPs Exit - ISPreview UK<\/title>\n<meta name=\"description\" content=\"A new report has revealed that two UK broadband ISPs, Exascale and Squirrel Internet, have recently decided to stop selling access to Gigaclear's\" \/>\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\/2026\/08\/conflict-of-interest-over-gigaclears-wholesale-broadband-sees-two-uk-isps-exit.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Conflict of Interest Over Gigaclear's Wholesale Broadband Sees Two UK ISPs Exit - 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