Alternative network operator Freedom Fibre is reportedly exploring the possibility of acquiring struggling provider VXFIBER. VXFIBER, along with its subsidiary ISP LilaConnect, has recently faced challenges, including job cuts and a pause in the rollout of its gigabit-capable Fibre-to-the-Premises (FTTP) broadband network in the UK.

Currently, Freedom Fibre’s full fibre network covers approximately 95,000 premises, a significant increase from 40,000 in November 2022. With an investment of £84m from Equitix and a £16m Santander debt facility, the company plans to expand to over 150,000 properties by 2023. Supported by UK ISP TalkTalk, Freedom Fibre aims to eventually cover more than 2 million premises in England and Wales.

It is important to note that Freedom Fibre’s network primarily serves parts of England, including Cheshire, Greater Manchester, Shropshire, and North Wales.

In comparison, VXFIBER, owned by InfraBridge, has deployments in several cities and towns in Staffordshire, including Stoke-on-Trent, Leek, Cannock, and Penkridge. They also operate in other areas such as Colchester in Essex, parts of London through Prime Fibre, Haverhill in Suffolk, Crewe and Nantwich in Cheshire, and have projects in Bristol and Uttoxeter.

However, recent reports from ISPreview have highlighted that VXFIBER’s operations in the UK have been impacted by job redundancies. The company has confirmed that they will be pausing further deployments to focus on commercializing their existing fibre infrastructure. Similar to other players in the industry, VXFIBER is facing challenges due to rising costs, competition from rivals, and the need to secure sufficient consumer take-up to satisfy investors.

According to Sky News, Freedom Fibre is one of several interested parties in acquiring VXFIBER’s business. Initial talks about a potential deal have reportedly taken place, although neither operator has made an official comment. It remains uncertain whether Freedom Fibre is interested in acquiring the entire VXFIBER network or only specific parts, such as those closest to its existing coverage in Stoke-on-Trent.

One of the key challenges in such negotiations is determining the valuation of the network. Since not all full fibre networks are built using the same equipment, reaching an agreement on the network’s value can be complex. Additionally, the buyer must consider the integration costs. It is also important to note that as more competitors overbuild the infrastructure, the value of the network may diminish, which is a concern for investors.

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