For years, fibre coverage in the UK has primarily been delivered and owned by major network operators, with a focus on largely populated towns, cities and the long-haul links that connect them. Yet, despite the market domination of these large players, there are still significant gaps in their geographical coverage.
With high-speed Internet connectivity increasingly seen as a must-have by consumers and businesses alike, altnets have emerged to put fibre in the ground and meet the needs of those not catered for, or covered by, the footprints of the major operators.
Since its inception, the altnet market has seen remarkable growth in the UK, with more than 100 providers striving to deliver high-speed fibre connectivity to areas outside of other providers’ fibre footprints.
Differentiation challenges
This rapid growth has intensified competition, making it challenging for altnets to distinguish themselves. Market consolidation is a key pressure; as competitors merge, economies of scale disadvantage smaller providers.
The urgency to quickly roll out network infrastructure, and to generate revenue and return on investment (ROI) for investors adds financial and operational strain. Since most altnets use similar technologies and offer comparable speeds, differentiating based on product features is difficult too.
Larger providers are also extending their reach into underserved areas, and altnets face the further challenge of proving reliability and performance in a market where consumers have high expectations, making it even harder to capture and retain customers.
Additionally, they are under pressure to reduce energy consumption to appeal to environmentally conscious consumers, which demands significant investment. Today, there are a range of approaches that altnets employ to meet these challenges and differentiate themselves in the marketplace.
Using automation
By demonstrating that they are continuously meeting their service level agreements (SLAs), altnets can highlight their reliability and consistency to customers, as well as verifying their compliance with SLAs. To do this, altnets should consider running regular automated checks of the services they provide to ensure the service is live and that all of the promised SLAs are being delivered.
This can be achieved through real-time performance tracking, with synthetic traffic sent to and from customer demarcation points, demonstrating that the agreed-upon bandwidth, latency and other SLAs are met, and allowing any issues to be quickly identified and resolved.
Importantly, altnets can provide customers with concrete proof of their commitment to delivering the SLA, addressing any concerns transparently and proactively.
Accelerating releases
The more time it takes to launch new services, the longer the wait for signing up new customers and seeing an ROI.
Test automation has emerged as a key accelerant to service launches because it removes the menial and time-consuming tasks that come with setting up and running the required pre-launch tests. It also significantly reduces the scope for errors during test phases.
This combination enables engineers to focus their time on what matters most - carrying out the required work identified by the tests.
There are two key areas where altnets can unlock competitive advantages with test automation. First, they can quickly test new products and high-speed optical and Ethernet links without impacting quality, which lets them accelerate time to market for new services.
Second, they can use test automation to carry out faster regression testing of existing infrastructure to ensure software upgrades do not present unforeseen bugs or performance issues.
CityFibre recently reported that it has accelerated time to market with testing up to x100 faster and test capacity increased by 300 per cent – thanks to test automation.
The result is faster operational readiness and the ability to bring new products, network technology and software upgrades to market sooner. Any altnets wanting to accelerate releases and time to market should take a closer look at test automation.
Enhancing efficiency
A third way to gain an advantage is by cutting energy use in network facilities. A general rule of thumb is that for every unit of power burned by the network equipment, you need the same amount of power to remove the heat it generates if using traditional HVAC systems.
In contrast, more efficient approaches involve extracting the heat via water-based systems – rather than blowing cold air into a hot room. For example, rear-door heat exchangers fitted to the back of network equipment racks, using water to absorb the heat from air exiting the equipment, while the air exiting the heat exchanger is cooled, helps to lower the temperature across the environment.
This is a far more sustainable way of addressing the generated heat than mixing hot air in the environment with cold air from an air conditioning (HVAC) system.
Methods such as hot and cold aisle containment also focus chilled air where it’s needed most, avoiding the waste of cooling an entire room.
By lowering their environmental impact and operating costs, altnets can appeal to customers who prioritise both performance and sustainability, and also want to demonstrate measurable ESG progress.
Achieving differentiation
Altnets have succeeded in filling coverage gaps left by major operators, yet their rapid growth brings challenges. As competitors merge, smaller providers feel added pressure to turn a profit in a short timeframe.
They can stand out by automating testing processes, enabling faster launches without compromising quality. Ongoing performance checks and prompt responses to network issues build trust with customers. Adopting power monitoring and efficient cooling solutions also highlights an altnet’s environmental responsibility, appealing to users who care about sustainability.
Finally, personalised customer service remains a powerful asset. Smaller providers are often better placed to build closer relationships with their communities and respond quickly to individual concerns.
Through a mix of automating SLA tracking and testing, and adopting more sustainable energy efficiencies, altnets can accelerate momentum, protect customer loyalty and carve out a distinctive presence in an evolving market.
This opinion piece was included in our May 2025 print issue. You can read the magazine in full here.