In a significant development within the UK telecommunications landscape, two prominent fibre altnets, FullFibre and Zzoomm, have announced their merger. This strategic union forms one of the largest alternative fibre networks in the UK, boasting over 600,000 properties passed with Fibre-to-the-Home (FTTH).
The merger positions the combined entity to serve over 65,000 existing customers, providing a robust platform for future growth. The companies highlighted the potential to expedite customer acquisition across a more extensive network. Their collaboration aims to harness funding for new developments and potentially future mergers. Operational efficiencies and financial savings seem imminent through the economies of scale achieved by this merger.
Leadership roles are also set to change within the new structure. The CEO of Zzoomm, Matthew Hare, assumes the role of executive chairman, while FullFibre’s CEO James Warner will become the Group CEO. Although financial details are yet to be disclosed, the merger promises to reshape the landscape of alternative network service providers.
The consolidation is part of a broader strategy to tackle market fragmentation. Matthew Hare, CEO of Zzoomm, stated, “We have consistently stated our strategy is to grow organically and by M&A in this fragmented market.”
This merger doesn’t stand in isolation in the telecommunications sector. Reports from the previous year suggested that Zzoomm was actively considering mergers and acquisitions. Meanwhile, FullFibre has prior experience with mergers, having previously joined forces with Digital Infrastructure and its internet service provider (ISP) unit, BeFibre, in 2023. This prior merger expanded FullFibre’s service availability to over 250,000 premises.
For FullFibre, this represents a continuation of their ambitious plans. James Warner remarked, “This next merger further accelerates our ambitions to lead the market and provide unmatched connectivity to homes, businesses, and wholesale partners alike.”