UK Altnets Review
Communications
Base case for Openreach is the altnets (ex-Infravia JV) reach 13m unique passes and 25% penetration. However, with Equinox 2 on the horizon, life will be tougher for most altnets, especially those that are retail facing, as the major ISPs accelerate their migration to the Openreach FTTP platform. For CityFibre, which relies on wholesale contracts and has commitments with leading ISPs, their position should be stronger and they will emerge as the market leader, and yet New Street’s base case EV is still negative. In this note, they assess the implications of this, what can happen to increase value and next steps for the UK market.
Edition: 150
- 09 December, 2022