en.Wedoany.com Reported - The UK fiber market is at a critical stage of transitioning from fragmentation to consolidation, according to the latest research commissioned by Nexfibre from Assembly, which points out that small alternative network operators (altnets) struggle to survive independently and the market urgently needs scaled challengers to drive sustainable competition and investment.

The study shows that while altnets have contributed to expanding full-fiber coverage, construction progress has been more fragmented than expected, with overbuilding leading to access difficulties. The report argues that long-term competitiveness in the wholesale fiber market and Openreach's path toward deregulation both require scaled challengers. Consolidation is one way to achieve this goal, and Assembly says it will lead to "a more sustainable market with fewer operators but ultimately greater financial stability."

The proposed transaction between Nexfibre and Netomnia is seen as a key case that could "help establish effective and sustainable competition against Openreach in the long term." Assembly also emphasizes the timeliness of consolidation, noting that "a lengthy Phase 2 merger review process could have a chilling effect on investment and deter other operators from taking the steps toward consolidation and meaningful scale that the industry now needs."

Rajiv Datta, CEO of Nexfibre, said: "Assembly's report captures the reality of the UK fiber market today and underscores that the next phase must focus on scale, sustainability, and genuine long-term competition. That's why the planned acquisition of Netomnia represents a true turning point for the industry; creating a wholesale challenger with the coverage and capital needed to compete effectively nationwide. By integrating complementary assets and unlocking further investment, this transaction can support the market structure the UK needs: protecting infrastructure competition, providing more choice for internet service providers (ISPs), and delivering better outcomes for consumers and businesses."

Matthew Howett, founder of Assembly, added: "Nexfibre's proposed acquisition of Netomnia is an example of the next chapter in the UK fiber story, where the market needs to move from fragmentation to consolidation. Scale and capital from consolidation will be key elements in creating a stronger competitor to Openreach, aligning with policy objectives based on lasting infrastructure competition."

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