The UK’s independent (altnet) operators increased their full network coverage by 27 per cent year-on-year to reach 16.4 million premises at the end of 2024, according to a report by Point Topic and the Independent Networks Co-operative Association (INCA).
The UK Independent Network Sector Report 2025 found that, 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.
The study also revealed that almost three quarters of a million customers decided to switch to an altnet during 2024, resulting in 2.7 million live connections (35 per cent growth year-on-year) to independent fixed networks provided by full fibre gigabit capable connections.
However, with economic turbulence causing private investment into the sector to scale back, the report also found that altnets will require government’s continued support to attract investment and reach the network coverage targets they have set for 2030.
INCA said that it expects the regulator to deliver a fair and competitive marketplace through its Telecoms Access Review 2026 (TAR26). TAR26 has also risen up the list of biggest concerns for altnets, climbing five places to second.
With 70 per cent of respondents highlighting potential risks from the review’s outcome, the report found that there’s a risk that the resulting framework could introduce further challenges to altnet sustainability — particularly if it weakens competitive protections or entrenches incumbent advantages.
The study also revealed that strategic mergers and acquisitions may also become key for smaller players due to the economic climate, but Ofcom views this almost as a regulatory necessity. In its TAR26 consultation document, the regulator stated that smaller altnet consolidation into larger independent players was key to its regulatory framework in order for them to provide the necessary level of competition to rival Openreach.
For the second consecutive year, the report found that 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, it concluded.
Paddy Paddison, CEO of INCA, said, “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, 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.”