UK broadband alt-nets to combine forces

Alternative networks (alt-net) FullFibre Limited and Zzoomm recently confirmed their companies have merged. The two UK broadband operators have made a name for themselves rolling out gigabit-capable Fibre-to-the-Premises (FTTP) networks throughout the country.

The new agreement has received all the regulatory approvals required and is now official.

While FullFibre Limited was supported solely by Basalt Infrastructure Partners LLP’s investment, Zzoomm was backed by banks (£100 million), private investors (£12 million) and Oaktree Capital (£112 million).

The freshly combined network of the two internet service providers (ISPs) extends to 600,000 businesses and homes and more than 70,000 UK customers – a 5,000 increase since January this year. The network now serves parts of approximately 110 market towns, counting it among the nation’s largest alt-nets.

A brief announcement from the merged firms said:

“The business will be in a much stronger position to accelerate organic growth across its two consumer brands and wholesale network. It will also be able to achieve greater operational and financial efficiencies through economies of scale.”

It added that as a larger group, it can secure funding in support of further investments for the networks it operates.

As per the new deal, CEO of Zzoomm, Matthew Hare, is to take on the mantle of Executive Chairman for the combined enterprise, while FullFibre Limited’s CEO, James Warner, will act as the Group CEO. Although the written agreement is now officially in place, it will likely take some time for full physical integration of the two firms to complete.