Openreach fiber monopoly is a growing threat, says Nexfibre CEO

Nexfibre chief executive Rajiv Datta has warned that the United Kingdom risks returning to a state of digital infrastructure dominance by Openreach if wholesale competition is not actively encouraged. The chief executive of the Virgin Media O2-backed fibre venture cited new research suggesting that without significant consolidation among alternative networks, the incumbent infrastructure provider could stifle market dynamics. Datta argued that the current trajectory of the market requires the presence of a strong secondary wholesale player to ensure long-term competitive pricing and innovation for consumers across the country.

The warnings come amid significant shifts in the British broadband landscape as various alternative providers seek to gain scale through mergers and acquisitions. Datta specifically highlighted the potential impact of a theoretical combination involving Netomnia as a necessary step toward creating a robust national challenger. According to the research commissioned by Nexfibre, a failure to establish a scaled competitor would leave retail internet service providers with fewer options, effectively cementing the position of BT Group’s infrastructure arm as the sole national provider of full-fibre connectivity.

Industry analysts have noted that while the UK fibre market has seen an influx of capital and a surge in smaller Altnets, the challenge of overbuild and high interest rates is forcing a period of rationalisation. Nexfibre positioned itself as a key driver of this consolidation, aiming to reach five million premises with its own network equipment. The company believes that achieving this scale is essential to providing the wholesale volume required to attract major retail partners who currently rely almost exclusively on Openreach's nationwide footprint.

The Nexfibre leadership team emphasised that the regulatory environment must remain supportive of these smaller players to prevent a natural monopoly from resurfacing. The chief executive suggested that the investment case for fibre remains strong but depends heavily on a level playing field where no single entity controls the majority of the nation’s digital gateways. By fostering an environment where at least two major wholesale networks can thrive, the government and regulators can ensure that the digital economy benefits from sustained downward pressure on prices and higher service standards.

Looking ahead, the provider intends to continue its aggressive rollout strategy while keeping an eye on further opportunities for market consolidation. The firm expects that the next twelve to eighteen months will be critical for the UK broadband sector as more households migrate from legacy copper connections to high-speed symmetrical fibre services. As Nexfibre expands its reach, the competition with Openreach is expected to intensify in suburban and semi-rural areas where multiple providers are now vying for the first-mover advantage in the transition to next-generation connectivity.