SCTE Broadband - May 2025

SCTE NEWS

Highlights n The UK’s independent (Altnet) operators remained resilient during the year, increasing their full network coverage by 27% year-on-year to reach 16.4 million premises at the end-2024. n Despite challenging market conditions, high global inflation, soaring energy and resource costs, combined altnet full fibre footprints covering cities, towns, and villages across the UK are keeping pace with Openreach’s 17.1 million premises at the close of 2024. n Almost three quarters of a million customers decided to switch to an altnet during 2024 leading to 2.7 million live connections (35% growth year-on-year) to independent fixed networks provided by full fibre gigabit capable connections. n With economic turbulence causing private investment into the sector to scale back, altnets will require the Government’s continued support to attract investment and reach the network coverage targets they have set for 2030. We expect the regulator to deliver a fair competitive marketplace, delivered via its Telecoms Access Review 2026 (TAR26). n Strategic mergers and acquisitions may become crucial for smaller players due to the economic climate, but Ofcom sees this almost as a regulatory necessity. In its TAR26 Consultation Document the regulator views smaller altnet consolidation into larger independent players as key to its regulatory framework for them to provide the necessary level of competition to rival that of Openreach. n For the second consecutive year, access to finance— combined with the broader economic outlook—remains the leading concern among altnet operators. With rising interest rates and ongoing inflationary pressures, many providers are finding it harder to secure the capital they need to scale networks and maintain operations. n Unsurprisingly, Ofcom’s upcoming Telecoms Access Review (TAR26) has surged up the list of concerns, rising five places to take the second spot. With 70% of respondents highlighting potential risks from the review’s outcome, there is a risk that the resulting framework could introduce further challenges to altnet sustainability—particularly if it weakens competitive protections or entrenches incumbent advantages. Metrics for the UK Independent Network Sector Report 2025

The UK’s independent network operators – altnets – are not just building networks, they’re building the foundation of a fairer, faster and more resilient digital United Kingdom. This year’s report, my first as INCA CEO, shows the continued growth of altnets from niche innovators to national competitors. In just a few years, altnets have grown to reach over a third of UK premises and often provide the only fibre connection in rural and hard-to-reach areas as well as previous urban not spots. From our towns and cities to our farms and homes, altnets have led the way in delivering faster, more affordable broadband with outstanding customer service and satisfaction. As we approach OFCOM’s Telecoms Access Review 2026 (TAR26), the decisions that are made now will shape the future of competition in UK Telecoms. We cannot allow dominance by legacy operators under the guise of market maturity. To allow for fair competition, altnets need the space to grow, regulatory certainty and above all a level playing field on pricing and access. The UK’s digital future will be won or lost in the next regulatory cycle. INCA is fighting to guarantee the altnets and their investors get a fair bet. INCA envisions a future where infrastructure competition thrives, and consumer choice is real. We call on the policymakers, the regulators and the investors to recognise the transformative impact of altnets and to provide a regulatory framework that empowers them. This report is more than a set of statistics – it’s a call to action. We must ensure that the positive change and impressive gains of the last decade are not lost through policy or regulatory missteps but instead are accelerated. The UK’s digital future and economic growth depend upon it.

Paddy Paddison CEO, INCA

For more information and to download the report in full visit

https://inca.coop/

May 2025 Volume 47 No.2

Made with FlippingBook - Online magazine maker