Assembly x Point Topic for INCA

State of the Altnets 2026

INCA Annual Report — March 2026

The definitive annual review of the UK’s independent fibre network operators — covering coverage, connections, pricing, investment, and the regulatory landscape.

Industry Metrics

19.7m

Premises passed (+20% YoY)

4.4★

‘Excellent’ Trustpilot rating

4.4m

Premises in Ofcom Area 3 (+20%)

+715,000

BDUK Project Gigabit premises

3.5m+

Live customer connections (+32%)

£19

Entry-level FTTP price

£3bn+

New external funding raised

900Mbps+

Cheaper where 4+ networks compete

Key Messages

  1. Coverage: Altnet network coverage increased 20% year-on-year to reach 19.7m premises by the end of 2025. Nearly 4.4m of these were in Ofcom’s ‘Area 3’, meaning Altnets have delivered full fibre connectivity to nearly half of all premises in hard-to-reach rural areas.
  2. Connections: Over 850,000 customers switched to an Altnet during 2025, leading to more than 3.5m live fibre connections. This reflects 32% growth year-on-year and an 18% take-up rate.
  3. Pricing & experience: Altnets have delivered price certainty for end users by largely avoiding inflation-linked mid-contract rises, while strengthening price competition. Altnets also outperform the largest retail ISPs on major consumer satisfaction rankings.
  4. Investment: Revenues rose significantly in 2025, with four Altnets reporting profitability for the first time. The sector invested over £2bn last year while attracting over £3bn in new external funding.
  5. Challenges: Altnets are most concerned about customer acquisition, reflecting a shift from premises passed to actual connections. Network deployment issues such as PIA and wayleaves remain top of mind, while overbuild risk has risen sharply.
  6. Outlook: The Altnet market will be shaped by regulatory and policy developments. Ofcom and Government will play a vital role in busting deployment barriers and enabling genuine competition in fibre networks.

Industry Analysis

Coverage

At the end of 2025, Altnets reached 19.7m premises in the UK, an increase of 3.3m year-on-year. Altnets cover areas ranging from urban multi-dwelling units to new build homes to premises in remote and geographically challenging locations. Altnets have also now reached almost 4.4m premises in Ofcom’s ‘Area 3’, signalling the development of a more competitive environment in harder to reach areas than the regulator originally anticipated.

Connections

Live connections for independent operators stood at more than 3.5m at the end of 2025, up from 2.7m or 32% YoY. In terms of penetration, Altnets are seeing an average adoption rate of 18%, which is up two percentage points from the previous year. This indicates that, despite many Altnets cautiously slowing or pausing network build activity, a greater focus on customer acquisition is beginning to deliver incremental gains in subscriber take-up.

Pricing & Customer Experience

Altnets have played an important role in improving consumer outcomes by widening the range of available price points, particularly for low-cost fibre access, while applying sustained competitive pressure on incumbents. Independent analysis shows that premises with access to four or more fibre networks consistently experience lower average pricing than those served only by Openreach FTTP. Altnets also continue to deliver a high-quality customer experience, often outperforming major retail ISPs on consumer-ranked review platforms such as Trustpilot and Google Reviews.

Investment & Consolidation

Investment flows in the sector have adjusted as the sole focus on build-out ends, with capex generally falling between 2024 and 2025. Nevertheless, funding for the Altnet market has increased significantly, reaching approximately £3.2bn in 2025 compared to just £1bn in 2023 and £0.6bn in 2024. Although consolidation continues to be a major talking point for Altnets, just six deals were agreed in 2025, with widespread M&A yet to take hold. However, 2026 has already seen the announcement of two prospective deals: nexfibre/Netomnia and Truespeed/Freedom Fibre.

CEO Foreword

“This is my second INCA Annual report and it’s been a pivotal year for the UK’s Telecoms Market and in particular the Independent Network Operators, the Altnets, as they have moved from disruptors to established players, shaping the market through investment, pace of delivery, and genuine customer choice. As the sector matures, the focus is shifting from build to take up and to sustainable economics with sharper competition, more disciplined capital and ongoing practical barriers that still affect speed and certainty.

In this environment policy and regulation will be decisive in securing a competitive investable gigabit market for the long term. Inca exists to represent that competitive network and the wider ecosystem that supports them, bringing evidence, convening practical solutions, and ensuring the Altnet perspective is heard by Ofcom, government, and stakeholders across the UK as the next phase of the Telecoms Access Review approaches. This report sets out the State of the Altnets and I thank INCA members and our partners for their support and engagement over the past year and in the creation of this report.”

Paddy Paddison
CEO, INCA

Download the Reports

Access the full State of the Altnets 2026 report, executive summary, and supporting data annex.