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Aviva-backed alternative gigabit broadband operator Truespeed, which has rolled out their full fibre (FTTP) network across 177,000 premises (44k customers) in rural parts of South West England, has today confirmed that they’ve reached a major merger agreement with Freedom Fibre to consolidate their two networks.
Just to recap. Truespeed, which only last year went through a merger with County Broadband (here), has so far deployed most of their combined network across rural parts of Devon, Wiltshire, Somerset Cambridgeshire, Essex, Norfolk and Suffolk. The combined premises count of 177,000 may seem small, in the grander scheme of things, but the rural focus gives the operator a much more significant geographic reach.
However, over the past couple of years, Truespeed has also had to deal with some of the same challenges as many other alternative networks (i.e. rising build costs, high interest rates and growing competition) – resulting in some job cuts, a build slowdown and greater focus on commercialisation (here and here).
By comparison, Freedom Fibre, which has already done some consolidating of its own with VX FIBER and associated retail ISP LilaConnect in 2023 (here), has recently been facing some of the same challenges as Truespeed. This included having to scale-back and withdraw from some of their government contracts under the Project Gigabit programme (here, here and here).
Nevertheless, Freedom Fibre has managed to expand their own gigabit fibre network to cover c.350,000 premises (inc. 25,000 customers) across various parts of England and North Wales – primarily parts of Cheshire, Greater Manchester, North Wales, Staffordshire, Suffolk, Essex and North Shropshire. The good news, given today’s announcement, is that they have no appreciable overbuild with Truespeed.
The Merger
According to the announcement, the signing of a merger agreement between Freedom Fibre and Truespeed is aimed at “creating a scaled, capital-efficient full fibre platform” that will play a “leading role in the ongoing consolidation of the UK alternative network sector“.
The deal promises to deliver a combined footprint of 412,000 premises ‘Ready for Service’ (the earlier figures likely include some non-RFS premises) and 70,000 customers, while also expanding their reach via existing wholesale partners in the retail ISP space. “The merged group is well-positioned to scale efficiently and accelerate its route to profitability,” added the announcement.
Nathan Vautier, Proposed CEO of the Combined Group, said:
“This merger is a strategic step that demonstrates our commitment to ongoing industry consolidation and growth. As we combine expertise and scale, our new platform is primed to lead future M&A and drive broader transformation. Together, we are set to accelerate expansion, create value and shape the sector’s evolution.”
Nelson Missier, Proposed Chief Strategy & Commercial Officer, said:
“This merger is an exciting development and the next logical step for Truespeed and Freedom Fibre. By combining complementary capabilities and business operations, we are creating a powerhouse to drive commercial growth, profitability and consolidation in the sector. Our shared vision is to grow further and faster, delivering world class connectivity and exceptional service to our wholesale and retail customers”.
Ian Shervell, Senior Director, Infrastructure Equity at Aviva Investors, said:
“We are glad to back this merger between Truespeed and Freedom Fibre. As the UK telecoms market matures, we believe Truespeed and Freedom Fibre bring together critical capabilities for future success, including experienced teams, high penetration levels, strong brand recognition, and a wholesale model underpinned by scalable technology and efficient operations. We believe the newly combined business is well-placed to capitalise on UK market trends, leading to improved performance prospects.”
James Burke, MD & Co-Head of InfraBridge, said:
“This combination is a highly logical next step for both businesses. Truespeed and Freedom Fibre bring complementary network footprints, operating models and go-to-market strengths, creating a stronger platform with greater operational depth, broader geographic reach and a more balanced wholesale and retail offering.”
The announcement confirms that existing investors – Aviva Investors, InfraBridge, and Equitix – have all backed the transaction. The combined group now says it will aim to boost customer numbers (i.e. continuing the focus on commercialisation rather than new network build), enhance service quality, and work to “achieve sustainable, capital-efficient growth“.
The combined group will of course benefit from holding a stronger position within the market, but at the same time they’re still not big enough to be considered a true scale player and thus further consolidation in the future still seems likely to follow. In the meantime, the new group will first have to go through the complex and expensive challenge of network integration, which often takes the best part of a year or so the run its course.
At present we note that the newly combined group doesn’t yet have an official name, thus it’s otherwise business as usual with their existing entities until further notice. The merger also remains subject to customary regulatory approvals, which seem unlikely to throw up any problems and are expected to be completed in Q2 2026.
Truespeed was advised by Acuity Advisors with legal advice from CMS Cameron McKenna Nabarro Olswang LLP. Houlihan Lokey acted as financial adviser to Freedom Fibre, with legal advice from Weil, Gotshal & Manges.