New generation of smaller alternative networks in UK are forcing incumbents to increase investment in broadband

There was once a time when the words “fixed line” turned investors cold — as the extraordinary growth of wireless telecoms and mobile data made cabling seem antiquated. Yet, in the age of full-fibre broadband, those tables have turned.  Investors are backing a new generation of smaller, alternative cabled networks — dubbed “alt-nets” — forcing larger incumbents to increase their investment in broadband. “There are two big things in telecoms right now: 5G and fibre,” says William Hare, an analyst with Omdia, a technology consultancy. “But, through the pandemic, fibre has become much more of a priority.” Political pressure has played a part, with various governments actions leading to upgrades of fibre broadband networks. These have ranged from threats to break up telecoms companies to offers of subsidies and tax incentives to encourage investment, particularly in rural areas. In the five years to 2024, the growth in fixed-line connectivity will be most pronounced in Spain, China, Egypt and the US, according to forecasts from Omdia.