Industry came together to discuss the prospects for, and concerns surrounding, the UK’s altnet market, and the role of consolidation in shaping its future
A wide-ranging review of altnet progress and an emphasis on the market’s importance to rural connectivity
On 11 March 2026, ahead of the imminent publication of Ofcom’s Telecoms Access Review (TAR) statement, the Independent Networks Cooperative Association (INCA) held its Better Fibre Live event in London. The event saw the presentation of key findings from INCA’s 2026 Annual Report by both Assembly Research and Point Topic, who jointly authored this year’s version. The report provides a comprehensive update of the state of the altnet market in the UK, focusing on a range of issues, including coverage, connections, pricing trends, consolidation and regulation. Ann Davies MP (Plaid Cymru) provided a keynote address, with her remarks – and subtle jabs aimed at “legacy operators” – playing well to the gathered audience. She emphasised the importance of altnets in delivering affordable broadband access across the country, as well as their particular role in supporting the rural economy. Davies reflected on her upbringing on a dairy farm in Wales, a business that would now rely heavily on high-quality connectivity for a variety of its operations, urging further action to narrow the digital divide and inequalities between urban areas and homes and businesses in rural locations such as those within her own constituency.
Pricing strategies and consolidation were top of mind for the market review panel as analysts raised their concerns for the altnet market’s future
The event’s first panel session continued the review of the altnet market. Pricing dominated much of the conversation as panellists cautioned that a ‘race to the bottom’ approach is unlikely to serve the sector well in the long-term. Hayden Shaw (Insight Director, FDM) further explained his concerns over falling broadband prices in recent years, contrasting this with the ever-increasing prices of Freddo chocolate bars. The panel also discussed prospective consolidation in the sector, with the focus falling as expected on the recently announced nexfibre acquisition of Netomnia. Karen Egan (MD Telecoms, Enders Analysis) raised potential concerns around the level of overbuild between the two operators, suggesting that the Competition and Markets Authority (CMA) might seek to “hurry” the deal through despite the likely strong opposition from CityFibre. Other panellists were more optimistic about the transaction’s prospects, with Matt Yardley (Managing Partner, Analysys Mason) considering that while it did not necessarily provide a blueprint for future consolidation, the deal – in addition to a Truespeed/Freedom Fibre merger – would be positive for the market overall. James Robinson (Senior Analyst, Assembly Research) stated his belief that no issue would be insurmountable to nexfibre/Netomnia going ahead and downplayed the risk of the CMA rushing to a decision, as it would instead use the full amount of time available to it under statutory merger control rules. Robinson added that a CityFibre acquisition of Netomnia might be a more straightforward deal for the CMA to approve (given reduced overbuild) but this was not the transaction on the table and one that could not be magicked into being.
A debate among CEOs revealed different perspectives on consolidation, regulation and the role of government
The second panel entitled ‘industry realities’ certainly lived up to expectations, with four current and former altnet CEOs trading contrasting views on issues from M&A to PIA. On the issue of consolidation, speakers agreed that the combination of different networks en masse is not, and should not be, altnets’ sole objective, with Graeme Oxby (CEO, Community Fibre) seeing their purpose as being more about providing effective competition to “woeful incumbents”. While Martin Harriman (Chair, Wildanet) recognised the challenge faced by some sub-scale altnets in achieving positive financial metrics, Conal Henry (Co-Founder and Chair, Fibrus) was defiant that Fibrus would not need a transaction to deliver on its business plan or to realise returns for investors. In respect of take-up, Guy Miller (Non-executive Director, MS3) made the case for state intervention, arguing that if widespread fibre adoption is considered vital to “UK plc”, then the Government should have a responsibility in driving it – particularly as it has been prepared to support availability through schemes such as Project Gigabit. Oxby, however, fundamentally disagreed, stating that it was not the duty of the Government to help altnet management teams that fail to “sell a better product [than copper or cable] at a lower price [than the major providers]”.
Access to Openreach’s ducts and poles has long been a bugbear for Henry, who restated his position that the calculation of prices based on a per metre and not a per premises basis makes the product disproportionately expensive for rural altnets. While Ofcom has dismissed moving away from this approach in the TAR, he nonetheless lamented that Fibrus’s PIA bill for this year is set to be twice its salary bill. In contrast, Oxby was happy with current pricing levels, stating that they provided a 90% gross margin, enabling him to charge competitive tariffs at the retail level. Even if access prices were to double, they would not make a difference to the London-based Community Fibre. Miller was critical of Ofcom’s approval of Openreach’s two Equinox offers, suggesting that they had even led to CityFibre being unable to compete with nexfibre over the acquisition of Netomnia. In Henry’s view, Equinox had been “disastrous”, already killing the wholesale model for altnets. These specific issues aside, the four CEOs were broadly comfortable with the certainty and consistency that the TAR is expected to offer over the 2026-2031 period, with Miller stating simply that “five years of the same is better than five of change”.
