The UK-based alternative network provider, Spring Fibre, has been acquired by Harmony Networks for £1.5 million. This acquisition reveals the hurdles smaller broadband providers face as they expand and compete with larger firms in the UK’s ambitious full-fibre rollout.
Spring Fibre, founded in 2019, aimed to connect one million UK premises with gigabit broadband. By 2021, they launched their network in Lincolnshire. The company secured £150 million for its expansion, yet progress stalled due to surging operational expenses and stiff regional competition. Today, Spring Fibre has only connected 12,000 premises.
The company’s recent struggles came into the spotlight following a report by the Telegraph. It disclosed that Spring Fibre was nearing collapse, burdened with £11 million in debt and a £3.8 million loss in 2022. Gareth Greppellini, a representative from the company, acknowledged, “While we can confirm we’ve had a significant level of interest, including indicative offers for the business, we don’t today have an offer that provides the necessary liquidity in the time we have available.”
Amid these challenges, Greppellini admitted that a notice had been filed to appoint administrators. This was a difficult decision, yet necessary under the circumstances. Despite ongoing negotiations with possible buyers, a deal that could preserve the company’s value had not materialized.
However, the situation reached a conclusion last Friday. Harmony Networks, mostly known for civil engineering and utility construction, emerged as the buyer for £1.5 million. Spring’s previous investors face a substantial loss, highlighting the financial pressures on small players in the UK broadband sector.
