The UK's alternative networks spur a fibre broadband ‘gold rush’

BAI Communications' £1 billion project to enable fiber broadband for Tube passengers and aboveground London businesses signals the coming of age of alternative networks, or "alt-nets," who are spending huge amounts of money to compete in the increasingly crowded UK market. About 50 such companies, backed by funds promising billions of pounds, have burst onto the scene in recent years pledging to take the fight to Openreach, the networking division of incumbent BT, as well as Virgin Media’s cable network. Ranging from those targeting customers in underserved rural areas to others seeking to become a partner for other telecommunications companies, they can claim to have forced Britain’s broadband upgrade to go faster than it might have otherwise. The prize is the promise of long-term riches should they beat the giants in offering ultrafast broadband in the great fiber land grab. Consumer demand for “gigabit” speed broadband—more than 10 times faster than the average today—is expected to soar, with the assumption that prices will rise to match. For the alternative networks, the pressure is on as consumers wait for them to deliver and telecoms industry professionals predict a wave of consolidation.