Politics Home | Upgrading Britain’s digital infrastructure: the three key benefits of consolidation in the full fibre market

The early years of the UK’s fibre roll-out were defined by rapid network build; fuelled by billions in investment as dozens of alternative networks entered the market. That phase undoubtedly helped to accelerate fibre coverage and stimulate innovation, as we saw the introduction of leading new technology XGS-PON.

However, the build‑out has slowed materially as the financial pressure on many smaller operators has mounted; with high debt levels, unsustainable revenue metrics and inefficient business models, in a fragmented market.

The challenge now is not only completing the full fibre build, but ensuring the market is sustainable and capable of supporting long-term investment. For that to happen, the UK needs providers with the scale and resilience to take on the incumbent meaningfully and consistently.

That is why consolidation, done in the right way, is not a threat to competition but a necessary step in strengthening it. Where previous paper-based mergers failed to materially move the needle, our recently announced acquisition of Netomnia offers a turning point.

In a fibre market dominated by BT Openreach, our ambition is to expand our fibre network to create a genuine national-scale wholesale fibre challenger to the incumbent – one that will deliver greater choice and quality for consumers and businesses by enhancing competition and strengthening the UK’s digital infrastructure.

1. Unlocking £3.5bn of international investment in the UK

nexfibre’s acquisition of Netomnia is a landmark deal. The transaction unlocks £3.5 billion of international investment, providing a vote of confidence in the UK as a destination for long-term capital.

Already welcomed by the Investment Minister, Lord Stockwood, our planned investment will support continued fibre expansion and next-generation network upgrades over the coming years. By 2027, we aim to have reached 8 million premises with full fibre, from Broxtowe to Bolton.

At a time when economic growth is a central government priority, this matters.

Our digital infrastructure supports economic growth and higher productivity and, by driving innovation and regional development, can help improve living standards in every part of the UK. Securing large-scale, long-term capital investment is therefore not just a telecoms issue, it is an economic one.

2. Creating scaled, sustainable competition in a fragmented market

For too long, the UK’s wholesale fibre infrastructure market has lacked genuine national-scale competition.

BT Openreach has played a vital role in building connectivity, but it has been the only operator with truly national reach. While altnets have made progress on a local level, fragmentation, funding pressures and inefficient business models have limited their ability to compete at scale.

This is where consolidation can deliver real change for the market. It is about ensuring the UK has the right market structure to drive innovation and competition for the long term which directly aligns to the UK government’s economic policies and Ofcom’s objectives.

This will also benefit ISPs and their customers, who will see greater choice and quality as a result of enhanced wholesale fibre competition and a genuine alternative to BT Openreach.

3. Delivering fibre access faster to millions of homes and businesses

Ultimately, the success of any infrastructure investment is measured by the benefits it delivers to people and businesses across the country.

Ofcom data shows that full-fibre availability has expanded rapidly in recent years as the rollout has accelerated. Yet there’s more to do; millions of premises still rely on legacy networks, and significant resources are needed to reach the Government’s goal of 99 per cent coverage by 2032. Closing that gap remains a national priority and we believe this transaction will help accelerate that progress.

By combining networks, and welcoming investment from our shareholders InfraVia, Liberty Global and Telefonica, nexfibre will extend fibre access to millions more homes and businesses, including upgrading existing infrastructure and expanding coverage into new areas.

A pivotal moment for the UK fibre market

The UK is now at a turning point in its digital infrastructure journey. The next phase must focus on sustainability, scale and long-term delivery.

As Ofcom has recognised, consolidation within the altnet sector is both expected and necessary. The priority now is ensuring that this evolution strengthens wholesale competition while maintaining strong incentives for continued investment.

If we get that balance right, the benefits will extend far beyond the telecoms sector.

A strong, competitive fibre market underpins productivity, supports innovation and drives economic growth. It is not simply about faster broadband – it is about building the infrastructure the UK economy will rely on for decades to come.

nexfibre is a wholesale-only fibre broadband operator. Today our network is one of the largest in the UK, covering more than 2.6 million premises, with Virgin Media O2 as our anchor tenant.