There are dozens of altnets offering gigabit broadband at unbelievable prices. But is the market about to come crashing down? Barry Collins investigates
The past few years have been boom times for British broadband customers. More than a hundred smaller fibre providers – so-called “altnets” – have sprung up across the country, installing fibre-to-the-premises and offering it to new customers at knock-down rates. Symmetrical gigabit broadband for £25 per month? Where do I sign?
The emergence of the altnets, combined with expanding fibre networks from both Openreach and Virgin Media, have rapidly enlarged the UK’s fibre footprint. The majority (57%) of British homes now have access to full-fibre, according to Ofcom figures published in December, covering 17 million homes. That’s up from 42% of homes only a year before.
However, the boom may be coming to an end. Having burned through their venture capital funding, many altnets are now focusing on getting customers to use the fibre broadband that passes by their door instead of expanding their networks further.
There’s also a widespread industry expectation that the number of altnets is going to decrease as quickly as it rose over the past few years, with consolidation in the market. Some are predicting that those 100+ altnets could eventually reduce to only one, much as the various cable networks that sprung up in the 1990s were gradually whittled down to only Virgin Media.
Sign up for a two-year deal with an altnet now and there’s a chance you could be the customer of a much bigger network before the contract expires, as the bigger fish look to gobble up smaller rivals so they can compete against Openreach and Virgin Media.
Is it worth taking a gigabit gamble on a smaller provider that might not even be around in a couple of years’ time? Let’s explore how the fibre broadband market is expected to shake down, along with the benefits and risks of signing up with one of Britain’s many altnets.
The broadband boom
It may have taken a while to get going, but the UK is now well on its way to becoming fully fibred. And, thanks in part to the emergence of many rural altnets, the whole of the UK is (with some notable exceptions) benefitting.
Northern Ireland has been the standout leader of the four UK countries. More than nine out of ten homes in Northern Ireland are now within reach of a full-fibre network, including 82% of rural homes, according to Ofcom’s Connected Nations report published
