Altnets on the Rise: What UK Businesses Need to Know About the New Fibre Frontier

Alternative network providers, known as altnets, are challenging the dominance of traditional ISPs by investing heavily in full fibre infrastructure. Despite reporting financial losses, providers like Netomnia and Community Fibre are gaining traction through aggressive growth strategies and expanded reach.

For businesses across the UK, this presents both new opportunities and important considerations when selecting future-proof connectivity.

Netomnia: Bold expansion plans with fresh funding

In a significant move, Netomnia has secured £160 million in funding, aiming to connect five million premises by 2027. With an expanding customer base, now at 310,000, the altnet is pushing into areas underserved by larger ISPs. While it reported a pre-tax loss of £20.8 million in 2023, this is largely attributed to the scale and pace of infrastructure rollout.

For businesses seeking business leased lines or full fibre solutions in growing regions, Netomnia’s network could soon be a viable high-performance alternative.

Explore leased line business broadband options

Community Fibre: Turning a corner with profitability

London-based Community Fibre recently announced its first-ever operating profit of £8 million (EBITDA) in 2024, after a strong 82% increase in revenue to £76 million. The company’s customer base has grown to 336,000, with a notable focus on ultrafast broadband in urban and business-heavy areas.

However, a £118.5 million pre-tax loss highlights the cost of rapid network development, a familiar challenge among fibre-first altnets. Still, for businesses in London and surrounding areas, Community Fibre represents a competitive, high-speed alternative to BT or Virgin Media.

Compare business broadband providers in your area

What This means for businesses

While traditional providers still hold the lion’s share of the market, altnets are accelerating competition, often delivering better speeds, lower latency, and more flexible pricing for businesses willing to switch.

Businesses should watch closely as:

• New fibre infrastructure reaches previously neglected areas.
• Prices become more competitive thanks to altnet pressure.
• Customer service improves due to increased market fragmentation.

Choosing the right broadband now involves more than just picking a well-known name. With tools to compare availability by postcode and evaluate total cost of ownership, it’s worth considering altnet coverage as part of your business connectivity strategy.

Market Impact: The numbers behind the Altnet surge

Data from industry sources shows a clear trend toward diversification in the UK broadband market, and the business implications are significant:

BT Group still leads with 28.3% market share, but this is declining year-on-year.

• Virgin Media holds 20.06%, while Sky is close behind at 19.9%.
• TalkTalk, once a major player, has dropped to 12.45% after losing 400,000 customers in the past year.
• Smaller providers (including altnets) now represent 19% of total broadband connections, up from just 12% in 2021.
• Government-backed initiatives like Project Gigabit are supporting altnet growth with over £5 billion in funding.

These statistics highlight that businesses have more provider choice than ever and many are turning to agile altnets that deliver better service and greater transparency.

Altnets like Netomnia and Community Fibre are rewriting the rules of UK connectivity. While financial challenges persist, their rapid growth and investment are paving the way for faster, more reliable broadband options, particularly for SMEs and remote offices.

What businesses should do next

As alternative network providers (altnets) continue to disrupt the UK broadband market, businesses must take a proactive approach to stay ahead of the curve. Simply sticking with legacy providers out of habit could mean missing out on faster speeds, lower costs, and better customer service.

Start by auditing your current connectivity. Is your existing broadband service delivering the speed, reliability, and uptime your business depends on? Many businesses are still running on outdated FTTC (fibre to the cabinet) connections, which can limit performance, especially as remote work, video calls, and cloud-based tools become more common.

Next, check for new providers in your area. Many altnets are expanding rapidly, particularly in underserved areas. Use a postcode-level broadband comparison tool to see if networks like Netomnia, Community Fibre, or Hyperoptic are available to you.

It’s also wise to review your current broadband contract. Altnets often offer shorter, more flexible terms, competitive pricing, and enhanced SLAs (Service Level Agreements), which can be better aligned with modern business needs.

Finally, plan for scalability. As your digital demands grow, ensure your connection can grow with you. Full fibre offers a more future-proof solution that can adapt to increased bandwidth and new technologies.

---

The broadband market is evolving, and so should your strategy. Altnets aren’t just a consumer trend. For UK businesses, they represent a smarter way forward.

Now is a great time for UK businesses to reassess their business broadband provider, and take advantage of the evolving competitive landscape.

For more busienss broadband guides, insights and information follow us over at Business Broadband Hub.