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UK Watchdog Probes Fiber Deal: Competition Fears Rise
2 Oct
Summary
- The Competition and Markets Authority is examining Nexfibre's acquisition of Netomnia.
- The watchdog fears the deal could reduce competition in wholesale broadband services.
- Nexfibre has until October 16 to address concerns before a final decision.
The UK's Competition and Markets Authority (CMA) has expressed provisional concerns regarding Nexfibre's proposed £2 billion acquisition of Netomnia. The watchdog believes this deal could substantially reduce competition in the wholesale supply of fixed broadband services across Britain. Nexfibre, a venture supported by Liberty Global, Telefonica, and InfraVia, is seeking to buy Netomnia, which is the country's second-largest alternative network provider.
Nexfibre has responded to the CMA's findings, arguing that they fail to acknowledge the reality of the UK's fibre market and the necessity for investment in a scaled competitor to Openreach. The buyers are now tasked with submitting potential solutions to the CMA's concerns by October 16. If approved, the acquisition would significantly expand Nexfibre's footprint, adding over 3.4 million fibre premises and 500,000 customers, aiming for a reach of 8 million premises by the end of 2027.
