News
The altnet has collapsed under mounting debt pressure
UK altnet Spring Fibre, has been sold to Harmony Networks for £1.5 million, the company has announced. The sale reflects the challenges smaller broadband providers face in scaling operations and competing with larger players in the UK’s full-fibre rollout.
Founded in 2019 with the ambition of rolling out gigabit broadband to one million premises across the UK, Spring Fibre initially sought to position itself as a key player in the UK’s fibre race. The company’s rollout officially began in Lincolnshire in 2021, with the company having raised £150 million to fuel its expansion.
Progress, however, was mired by rapidly growing operational costs and stiff regional competition. To date, Spring Fibre has only succeeded in passing 12,000 UK premises with full fibre.
The extent of the company’s financial woes only became apparent recently, with a report from the Telegraph confirmed that Spring Fibre was on the brink of collapse, with its debt pile standing at £11 million, and had made a loss of £3.8 million in 2022.
“While we can confirm we’ve had a significant level of interest, including indicative offers for the business, we don’t today have an offer that provides the necessary liquidity in the time we have available,” said Gareth Greppellini at the time.
“Unfortunately, with this in mind, we have taken the difficult decision to file a notice of intention [to appoint administrators],” he added.
At the time, Greppellini said discussions with potential purchases were still ongoing with the aim of reaching a deal that “maximises value for the business”.
On Friday, a buyer was finally announced with civil engineering and utility construction contractor Harmony Networks agreeing to buy the altnet for £1.5 million, representing a considerable loss for Spring’s investors.
The acquisition highlights the challenging economic environment for the UK’s broadband altnets, where smaller players are struggling to maintain financial viability while deploying infrastructure in underserved areas.
The sale also highlights broader issues within the market, including the sustainability of large expansion plans and the financial pressures faced by new entrants. As competition intensifies, Spring Fibre’s story reflects the difficulties of maintaining momentum in a crowded and capital-heavy industry, and foreshadows the sectors inevitable consolidation.
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