The proposed nexfibre/Netomnia transaction took centre stage, as panellists debated network overlaps, the deal’s potential impact on competition and whether it warrants an in-depth review
The telecoms sector is subject to 26 distinct pieces of legislation or regulation
On 13 May 2026, the Internet Services Providers' Association (ISPA) held its annual ISP Summit. Steve Leighton (Chair, ISPA) opened the event, pointing to success stories across the industry, including the UK having the fastest growing fibre adoption rate in Europe. However, he emphasised the pressure that members remain under, stating that while the 42% real-terms reduction in broadband prices over recent years may represent a positive outcome for consumers, it does not necessarily mean good news for those operators seeking a return on investment. This concern was later recognised by Sally-Anne Skinner (CEO, Ogi), who argued that operators had “devalued” the consumer market through a focus on selling based on price and speed, underlining the ongoing difficulty in driving the take-up of fibre services. Leighton also cited the 26 separate pieces of legislation or regulation operators face in the design, deployment or running of telecoms networks, which ISPA had recently highlighted in its engagement with the Chancellor, who was apparently receptive to the association’s arguments around over-regulation.
The proposed nexfibre/Netomnia combination dominated discussions on the future of UK fibre
The opening session began in a self-reflective mood, as panellists discussed the financial health and significant debt loads of the altnet sector. Jeremy Chelot (CEO, Substantial Group) highlighted the “painful” restructuring experienced by G.Network and Gigaclear, while pointing to the forthcoming refinancing altnets such as KCOM and Hyperoptic may be poised to undertake. Chelot even recognised the ~£1bn of debt carried by his own altnet, Netomnia, as well as the “unhealthy” balance sheet of its potential acquirer, nexfibre. Simon Holden (CEO, CityFibre) struck a more optimistic tone, stating that CityFibre was close to achieving 1m premises on its network – urging the audience to look out for an announcement (and party) once that milestone is reached. Holden considered that the industry was at the most difficult part of the investment-return cycle, but saw incumbents losing market share, altnet penetration rising and many business models playing out in a positive way. However, Nathan Rundle (CEO, Gigaclear) stated that while Chelot was not wrong and there is too much debt in the sector, it is only a problem if you can’t service the interest. He considered that the altnet market was reminiscent of the overleveraged and ultimately consolidated cable sector that emerged 20 years ago, providing an appropriate segue on to the topic of M&A and the proposed nexfibre/Netomnia transaction.
Sam Horrocks (CFO, Hyperoptic) stated that he was “agnostic” on the deal given that it would have no material impact on Hyperoptic, but nevertheless considered it was positive for the sector that buyers and sellers had found an agreed price for an asset. Rundle was more evasive on whether or not the acquisition should go ahead but recognised that consolidation and scale will be key for altnets, particularly to secure a large retail ISP customer (e.g. Sky). Understandably, Chelot positioned consolidation as the path to realising financially sustainable businesses, stating that it was never a question of if altnets would merge, but who. Holden stated that consolidation would lead to deleveraging and altnets becoming “investment-grade” by 2030; however, he warned that the UK was at risk of being “one deal from being a two-player market”. Holden described the transaction in question as “the number one player” in certain areas (Virgin Media O2) “taking out the maverick”, adding that “if you can’t beat them buy them” does not represent good competition policy.
Chelot reminded Holden that Virgin Media O2 is not the acquiring party and as such the focus should not be on it seeking to take out a major competitor. He added that there are multiple routes to creating effective, long-term competition to Openreach, while underlining that to make a wholesale platform work, an altnet needs scale and traffic – exactly what the merger would deliver. In his view, the only beneficiary of the transaction not going ahead would be Openreach. Making clear she has “no skin in the game”, Dr Helen Weeds (Senior Consultant, Charles River Associates) stated that the Competition and Markets Authority (CMA) would be focused on the effects on the wholesale market, where if the parties were not present, it could not identify a substantial lessening of competition (SLC). However, Weeds argued that the CMA would analyse the common ownership and incentives of nexfibre and Virgin Media O2, as well as their overlaps with Netomnia’s network footprints, considering that it would assess the market at the local rather than national level. Seeing the deal as likely going to a Phase 2 review, she described closure in 2026 as “ambitious”. With Chelot confidently stating that “we have a plan” to secure approval, Holden asserted unambiguously that the transaction should be blocked and that he struggled to envisage remedies that would allow it to go through.
Ofcom is establishing a new function to monitor Openreach’s behaviour and the evolution of competition
Following publication of the Telecoms Access Review (TAR) statement in March 2026, Ben Harries (Policy Director for Competition, Ofcom) sought to provide the regulator’s view on the state of the market alongside its priorities going forward. Harries stated that the progress witnessed in UK fibre was real, with more than three-quarters of households now having at least one alternative to Openreach. However, for Ofcom, sustainable competition depends more than the volume of assets in the ground. The regulator will therefore be setting up a new supervisory function to track the development of competition, which it expects to strengthen over time, but will nevertheless be looking at factors such as market shares, fibre take-up, altnets’ financial positions, wholesale agreements and M&A activity. Principally, the unit will proactively monitor Openreach’s compliance with the various rules imposed on it, including those relating to the “transformational” physical infrastructure access (PIA) remedy and to “anti-competitive overbuild”. Harries anticipated that future Openreach wholesale offers will be a priority for the new team, based on his expectation that the former incumbent will not “sit on its hands”.
Responding to a question on copper retirement, Harries identified clear inertia among some customers over migrating to fibre – a clear issue for altnets given the degree to which stimulating take-up matters to their business case. He stated that Ofcom’s door was open to suggestions on its role in driving adoption and what more it could be doing, while recognising that this may not necessarily be the regulator’s place or responsibility. With Ofcom’s consultation on the second of its three-part copper switch-off framework now closed, Harries joked that he might not be looking forward to reading stakeholders’ submissions, acknowledging the different views on whether the regulator should take altnet fibre build into account in determining coverage thresholds for the removal of copper charge controls, and in turn whether or not these drive Openreach’s rollout incentives. He stated that Ofcom’s framework was not a perfect science, but ultimately a regulatory judgement that aims to best balance its various objectives for copper retirement.
The Government is too focused on operators’ impact on inflation rather than growth
The subsequent panel heard all too familiar arguments regarding policymakers’ lack of recognition of broadband’s central role in driving economic growth. Alex Blowers (Director of Regulatory Affairs, CityFibre) stressed that fibre was key to delivering a modern industrial strategy, but considered that the industry was a victim of its own success as others find themselves in crisis mode. Emma Shearer (Head of Public Affairs, Virgin Media O2) echoed this point, stating that digital infrastructure was not a utility but a strategic national asset that should be brought to the forefront of the Government’s mind. With Shearer highlighting the tension between the Government’s growth mandate and the cost of living imperative, Tim Stranack (Regulatory Director, Community Fibre) bemoaned the myth that the sector was trying to dispel among policymakers that prices are going up and contributing to inflation. Instead, Stranack stated that it faces a significant cost burden in terms of compliance that diverts money away from networks, urging the Government to review and remove any unnecessary rules. While Gemma Whiteley (Head of Regulatory and Government Affairs, Verizon UK) welcomed the inclusion of business connectivity in the Government’s Statement of Strategic Priorities (SSP) for Ofcom, she argued that policymakers are not good at conducting cost-benefit analyses of certain interventions, such as charters, which “really hurts”. Blowers stated that it was vital to push back against these kinds of ‘soft’ measures, suggesting that calling in CEOs to Westminster to give them “a kick up the arse” did not represent effective regulation.
