Rajiv Datta, CEO of wholesale fibre platform nexfibre, believes the company’s planned acquisition of Netomnia marks a decisive moment, not just for the business itself, but for the wider UK fibre landscape.

Agreed through nexfibre’s joint venture structure, the transaction values Netomnia’s parent Substantial Group at around £2 billion and is expected to unlock roughly £3.5 billion of additional international investment into UK digital infrastructure. For Datta, however, the most important element is scale.

“nexfibre’s mission is to build a scaled wholesale platform in the fibre space,” he says. “On our own we have a greenfield build of around 2.6 million homes passed. The Netomnia transaction catapults us forward from a scale perspective.”

Once combined with other network upgrades, particularly those taking place within Virgin Media O2’s footprint, the enlarged platform is expected to reach approximately eight million homes by the end of 2027. That would represent around 25–30% of the UK’s fibre-to-the-home (FTTH) market.

“For us, that’s a landmark deal in terms of scale and capability,” Datta says. “It accelerates the pace at which we’re building a national wholesale platform.”

The strategy hinges on creating a credible challenger to the UK’s long-dominant fibre infrastructure provider. For decades, BT’s Openreach division has occupied a central position in the country’s broadband ecosystem, supplying wholesale network access to many internet service providers.

Datta argues that breaking that dynamic requires more than incremental network expansion.

“This is about creating a competitive force in the market,” he explains. “There has always been a discussion among altnets about how to mount a real challenge to Openreach. Scale is what makes that possible.”

Integration of Netomnia’s network into the nexfibre platform will be a complex process, involving multiple operational layers—from infrastructure and IT systems to staff and organisational processes. Datta estimates the work will take between 12 and 18 months following regulatory approval and deal completion.

“Network integration, IT integration, people, systems, processes—there are many moving parts,” he says. “But we believe that timeline is realistic for bringing everything together.”

Beyond its direct operational impact, the acquisition is also being interpreted by industry observers as a potential catalyst for a broader consolidation wave across the UK’s fragmented altnet sector.

Datta himself agrees the deal could serve as a turning point.

“I think it has to be viewed as a bellwether transaction,” he says. “The market has taken a long time to move toward meaningful consolidation.”

In recent years, dozens of smaller fibre builders have launched projects across the UK, often targeting overlapping geographic areas while competing for investment capital and wholesale customers. As build costs have risen and financing conditions tightened, some operators have begun to struggle.

“We’re starting to see examples of altnets facing financial challenges and restructuring activity has picked up,” Datta notes. “But actually executing consolidation has proven difficult. It requires the right financial structure and alignment among shareholders.”

He credits nexfibre’s backers—InfraVia, Liberty Global and Telefónica—as well as its operational partnership with Virgin Media O2, with providing the financial strength and industry experience needed to complete such a large transaction.

“We’re proud to have been able to drive a landmark deal,” he says. “But there’s still a long way to go. There are roughly another 15 million premises covered by different altnets out there.”

For Datta, the central lesson from the industry’s recent turbulence is clear: scale matters.

Wholesale customers, particularly retail internet service providers, want simplicity and consistency when connecting to network partners. Fragmentation creates operational friction.

“If you’re a retail ISP, partnering with a provider that covers half a town but not the other half creates inefficiencies,” he explains. “You end up doing multiple integrations, managing multiple systems and processes.”

Technical integration alone can be demanding, he adds, often involving lengthy IT projects before services can be launched.

“Doing one integration that reaches eight million or even 20 million homes is a very different proposition from doing ten separate integrations with networks that each cover 500,000 homes,” he says.

This is where nexfibre believes its strategy will ultimately differentiate it from other altnets. By combining its own build programme with Virgin Media O2’s ongoing network upgrades, the company expects to have a clear path toward offering access to as many as 20 million premises.

“No other player in the market can really connect the dots to that kind of scale,” Datta says. “Our objective is to be the only scaled alternative wholesale platform to Openreach.”

Looking ahead, Datta also sees emerging technologies—particularly artificial intelligence—as another factor that will intensify demand for high-capacity fibre infrastructure.

AI affects the sector in two key ways, he argues. The first is operational: using AI tools to improve network management, customer service and predictive maintenance.

“There’s a lot of work happening around how AI can improve service quality and reduce cost to serve,” he says. “Customers increasingly want the ability to self-serve and solve problems quickly.”

The second dimension is demand-driven. As AI-enabled services expand, they are expected to require ever higher bandwidth and lower latency connections.

Historically, debates within the broadband industry have focused on how much speed consumers actually need. Datta believes that question misses the bigger picture.

“Our entire network is built on XGS-PON technology, capable of delivering 10 gigabit speeds,” he says. “Sometimes people ask who really needs that today. But these technologies are about more than just speed, they also deliver lower latency and additional capabilities.”

Future applications—ranging from advanced AI services to autonomous systems—will rely heavily on those characteristics.

“Whether it’s robots in the home, autonomous vehicles or applications we can’t even fully describe yet, all of those roads lead back to demand for high-quality connectivity,” Datta says.

“Data centres are great, but data centres that aren’t connected are fairly useless. That connectivity layer is where we come in.”

Despite the focus on national scale, nexfibre also emphasises expanding fibre access into communities that have historically been overlooked by large network providers.

From the outset, the company’s rollout strategy targeted areas outside Virgin Media O2’s traditional footprint, which has historically been concentrated in major towns and cities.

“That means many of the areas we’re building in are semi-urban or semi-rural communities that have been underserved,” Datta says.

The company also works with organisations such as UK Youth to connect youth centres and community facilities, helping improve digital access for disadvantaged groups.

Ultimately, Datta believes the broader impact of the Netomnia transaction will extend beyond corporate strategy.

“This deal is going to accelerate full-fibre access for more than two million homes,” he says. “It creates more wholesale choice, more capability and ultimately better service for consumers.”

In a sector where consolidation has long been predicted but rarely delivered, nexfibre is positioning itself at the centre of the next phase.

“We’re building a sustainable wholesale platform,” Datta says. “And this transaction puts us in a very strong position to achieve that.”

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