This week marks an exciting development in the UK broadband sector with the launch of Zen Internet’s The Fibre Hub. Zen Internet, a Rochdale-based ISP, aims to streamline access to multiple altnet networks through a single aggregation platform.
The platform simplifies the process for Internet Service Providers (ISPs) by consolidating multiple network providers like CityFibre. This allows ISPs access to Business and Residential FTTP services at a wholesale level. Zen plans to expand this access with upcoming integrations with Trooli and Freedom Fibre, set for June and July. Additionally, two more altnets are expected to be unveiled shortly, as confirmed by their CEO, Richard Tang.
According to Tang, the goal is to attract major ISPs, such as Vodafone and Sky, into the mix. “Achieving a critical mass of around one million premises will make the business case appealing for them,” Tang stated.
However, the road to becoming an appealing platform for ISPs is not without challenges. Tang noted that the competitive nature of the fibre market offers a unique opportunity for aggregation as opposed to the anticipated fast-paced consolidation. Market dynamics like overbuild and changing take-up rates add complexity, impacting valuation and complicating mergers and acquisitions.
For smaller altnets, opting for aggregation can be more feasible than outright acquisition. Tang remarked that the slower market consolidation increases the potential value that Zen can offer by bundling these networks.
