Rajiv Datta, CEO
Ofcom’s latest Telecoms Access Review (TAR) provides much‑needed clarity for the UK’s digital infrastructure market. After several years of rapid build by many sub-scale, highly indebted alternative fibre operators, the regulator has set out a direction that recognises what the sector needs most: a stable, predictable regulatory environment that supports long‑term investment and the emergence of genuine national‑scale wholesale fibre competition.
Stability is a prerequisite for investment
BT Openreach continues to hold significant market power, and sustainable national‑scale competition has not yet fully emerged at the fibre infrastructure level. For that reason, it is essential that the incumbent is not deregulated prematurely. To deregulate too early would risk undermining the very progress the UK has made – weakening investor confidence, and applying further pressure to an already largely distressed altnet market.
Today’s TAR publication goes some way towards providing that confidence, signalling that Ofcom understands the market’s evolution and remains committed to ensuring a fair competitive environment.
The market is now entering its next phase
The wholesale fibre market must now transition to the next stage of maturity. The early years were defined by rapid network build, fuelled by dozens of alternative networks entering the field, often targeting the same areas and attempting to deliver vertically integrated retail services while building capital intensive infrastructure. That phase helped accelerate fibre coverage and stimulate innovation.
But the build‑out has slowed materially as the financial pressure on many smaller operators has mounted with high debt levels & unsustainable revenue metrics given the fragmentation of the market and inefficiency of their business models. For long‑term sustainable competition to emerge at a national level, the UK needs providers with the scale and resilience to take on the incumbent meaningfully and consistently.
The stage is set for consolidation
Where previous paper-based mergers failed to materially move the needle, our recently announced acquisition of Netomnia is a turning point. This is a landmark deal that will unlock £3.5bn of investment into the UK, creating a scaled and financially secure wholesale fibre challenger. It directly aligns to the UK government’s economic policies and Ofcom’s objectives of creating national-scale competition in a market that has long-been monopolised by BT Openreach, providing genuine choice for ISPs, and faster access to fibre for millions of people and businesses.
This is what the market has been waiting for. It is about ensuring the UK has the right market structure to drive innovation and competition for the long term.
A clear path ahead
By maintaining appropriate regulation of the incumbent and offering long‑term policy stability, today’s TAR publication provides a platform for continued investment and the emergence of sustainable national‑scale competition.
I believe that nexfibre’s acquisition of Netomnia signifies the start of a new era; one that demonstrates the commitment to accelerating full‑fibre coverage and helps ensure the UK can build a wholesale fibre market that is competitive, resilient and capable of supporting the country’s digital ambitions for decades to come.