According to a survey of 100 senior-decision makers at Altnets, by Neos Networks and carried out by Censuswide, many providers revealed they are facing major challenges including low customer awareness to rising costs and regulatory pressures, alongside increasing competition.
The data revealed 47% said they struggle with brand awareness in crowded markets with 48% reporting difficulty accessing funding, thanks to high interest rates.
The data also revealed Altnets expect to spend £1.4 million each removing equipment from BT exchanges ahead of the copper network shutdown in 2027.
Meanwhile 55% stated their ideal customers are “locked into pre-existing contacts”.
As a result, to stay competitive, 98% of altnets plan to expand beyond basic broadband services, with 46% to offer smart home technology.
Some 43% revealed plans to launch enterprise connectivity solutions, 42% to launch security solutions and 35% to introduce bundles like TV and entertainment, respectively.
Neos Networks CEO, Lee Myall, said: "Altnets have played a pivotal role in reshaping the UK's connectivity landscape, driving the expansion of full-fibre networks and challenging established incumbents.
“However, the industry now stands at a crucial crossroads. Heightened competition, financial pressures, and shifting regulatory frameworks mean that altnets must evolve rapidly to secure their long-term future.
"Our research highlights that altnets are exploring a variety of strategies - from mergers and acquisitions to strategic partnerships and service diversification - to strengthen their market position and pave the way for sustainable growth."
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