- 96% of UK altnets are exploring mergers, acquisitions or partnerships to survive a tough market.
- 98% plan to diversify beyond traditional broadband into services like smart home tech and enterprise connectivity.
What happened: Altnets face consolidation push amid mounting challenges
A staggering 96% of UK alternative network providers (altnets) are actively considering mergers, acquisitions or partnerships, according to new research published by Neos Networks. The survey, conducted by Censuswide and based on responses from 100 senior altnet decision-makers, highlights an industry under strain and hunting for scale or exit strategies.
The data reveals multiple pain points driving this consolidation trend. More than half (55%) of respondents cite the difficulty of competing with entrenched rivals, with target customers locked into existing contracts. Nearly half (47%) admit to struggling with brand visibility, an issue compounded by the presence of multiple altnets competing in the same regions. In some localities, as many as four providers vie for the same customer base, intensifying pressure on marketing and sales efforts.
Altnets are also grappling with economic hurdles. Some 48% have found it hard to access funding in the past year, with high interest rates further worsening financial constraints. Regulatory obligations, such as the mandatory removal of equipment from BT exchanges by 2027 as part of the copper network shutdown, pose additional costs — averaging £14 million per provider.
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Why it is important
These challenges are pushing altnets to diversify their offerings in a bid to strengthen their positions. The research shows that 98% expect to expand beyond residential broadband into areas like smart home technologies, enterprise connectivity, security solutions and entertainment services. This diversification aims to boost customer satisfaction — which 55% of respondents identified as their top strategic priority.
Technology differentiation also features heavily in altnet strategies. Software-defined networking (SDN), network function virtualisation (NFV), and 5G fixed wireless access are among the innovations that providers believe can help them compete more effectively in saturated markets.
While Neos Networks positions itself as a partner that can help altnets navigate these hurdles, its role in potential consolidation is worth noting. The prominence of the 96% figure raises questions about whether the company is simply reporting industry sentiment — or subtly signalling its own appetite for M&A opportunities. Either way, the coming years are likely to see significant shifts in the UK’s fragmented broadband landscape.
