Netomnia to Expand Using Openreach Fibre and Enter Mobile Market

Netomnia, one of the UK’s leading alternative network providers, is embarking on a strategic push to use BT Openreach’s nationwide infrastructure for broadband services and to enter the mobile telecoms sector. This dual move comes as altnets seek new revenue streams after significant investments in rolling out fullfibre networks in the face of mounting competition and shifting market dynamics.

The wholesale arrangement with Openreach will enable Netomnia, which already serves 375000 broadband customers under the YouFibre and Brsk brands, to reach an additional 1.5 million premises. This expansion aims to curb customer churn that commonly arises when subscribers move to areas not yet covered by Netomnia’s network. By leveraging existing Openreach fibre, the company can sidestep the substantial costs of network construction while broadening its service area.

In response to increasingly competitive conditions, many alternative network operators are reassessing their growth strategies. The UK’s sector has witnessed fierce price wars, aggressive customer acquisition tactics, and the impact of higher interest rates combined with more cautious lending. As a result, several altnets are consolidating operations and focusing on driving uptake on their established networks.

Netomnia’s ambitions do not end with fixed broadband. Plans are in place to launch mobile telecoms offerings later this year by utilising the infrastructure of the newly merged VodafoneThree network. By entering the mobile market as a virtual network operator, Netomnia will look to serve its large domestic customer base with competitively priced bundles that could help reinforce its market position.

To support these expansion plans, Netomnia has secured £140 million in junior debt from Bain Capital and Rand Merchant Bank. Company founder and chief executive Jeremy Chelot described the funding round as oversubscribed, highlighting robust interest from both new and existing lenders. The capital injection comes at an interest rate of around 12 per cent, underscoring the current lending environment’s challenges for the rapidly evolving altnet sector.

Netomnia currently has 2.7 million premises passed and aims to increase this to three million by year end and five million by 2027. This gives Netomnia the second largest coverage footprint among UK altnets, trailing only CityFibre. Despite being ebitda positive, the company’s parent group recently reported a pre tax loss of £102 million, with debt levels rising to £629 million, reflecting ongoing investments in network expansion.

Netomnia, founded in 2019 by industry veteran Jeremy Chelot and backed by major private equity firms, remains focused on expanding its reach and strengthening its market credentials, even as the sector undergoes rapid and challenging transformation.