Network builder nexfibre, which is being supported by UK ISP Virgin Media (O2), has today warned that the progress on rolling out gigabit full fibre (FTTP) broadband networks across the UK remains “fragile” and it wants Ofcom to take “decisive action” to prevent the “mistakes of the past” (i.e. Openreach domination) from being “repeated“.
So far Nexfibre has covered over 1 million premises across the UK with their new network and they’re currently in the process of investing another £1bn during 2024, which should enable them to cover an additional 1 million premises. The project reflects a £4.5bn joint venture between Telefónica, Liberty Global and InfraVia Capital Partners, which was setup in 2022 (here) and shares some of the same parentage with Virgin Media.
The operator’s ultimate aim is to deploy an open access fibre network to reach “up to” 7 million UK homes (starting with 5m by 2026) in areas NOT currently served by Virgin Media’s network of 16m+ premises. But they’re also mindful of how their plans and vested interests could potentially be impacted by Ofcom’s upcoming Telecoms Access Review 2026 (here), which is naturally something they’d want to protect.
As part of this concern, the operator has today published a new report – ‘Platform for progress‘. The report broadly calls on the industry, policymakers and Ofcom to work together in order to focus on “prioritising competition, investment and innovation,” while at the same time avoiding any changes that could cause the UK to “head back to a place where there is a single dominant provider” (i.e. Openreach).
The report advocates for 3 “crucial” areas:
➤ A stable regulatory environment which continues to attract the much-needed investment in the UK’s digital infrastructure. The only way the UK can drive momentum beyond the current roll-out is to ensure a sustainable, competitive market long term.
➤ A regulatory framework which ensures a consistent and equitable playing field for all operators. Regulators and policymakers must restrain anti-competitive behaviour from the incumbent and put in place a regulatory framework which addresses exclusion of competitors.
➤ A market characterised by sustainable competition rather than fragmented sub-scale operators. The UK needs national-scale wholesale competition to secure future progress and generate the right conditions to accelerate innovation and development in the full-fibre market.
The final point above, which seems targeted at smaller alternative networks (Altnets), almost reads like an attempt by nexfibre to have their cake and eat it (i.e. arguing both against a single dominant provider and, at the same time, a patchwork market of smaller altnets). As we said, vested interests are all at play here, given that nexfibre’s build targets the upper middle ground of market scale (5-7m premises).
Rajiv Datta, CEO of nexfibre, said:
“I am delighted to publish nexfibre’s ‘Platform for Progress’ report, reflecting on our first year operating in the market and taking a critical look at what is needed to further unlock the sector’s potential.
As we have set out today, the market faces a series of challenges. Some of these have been driven by a historic lack of investment and others have been the result of external factors. All of them can be overcome if we create a dynamic market environment conducive to competition and progress.
I look forward to working with industry partners and policymakers as we move towards delivering digital infrastructure that is fit for the future.”
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