Tue, 06 Jun 2023 | ADMINISTRATION
Broadway Partners, a UK alternative network (altnet) broadband provider focused on delivering full fibre access across rural areas of Scotland and Wales, has fallen into administration. Administrators from Teneo Financial Advisory will now seek to prepare the business for a sale.
The company was founded in 2016 and in 2021 secured £145 million in funding from sustainable investment firm Downing. The firm ultimately aimed for its new full fibre network to cover 250,000 premises in rural communities in Scotland and Wales by 2028. Deployments were already underway in areas including Pembrokeshire, Powys, Monmouthshire and the Isle of Arran.
Despite the significant investment, however, the company was reported to have been impacted by several issues facing the broadband market, including soaring interest rates and inflation. As a result of its struggles, Teneo’s Benjamin Dymant and Daniel James Mark Smith were appointed as joint administrators on May 31.
Joint administrator Benjamin Dymant said: “Following significant investment in Ultrafast Full Fibre broadband, the sector has been facing into a number of adverse macroeconomic issues, including raising interest rates and inflation, in a highly competitive environment.”
“Despite having successfully connected a range of outlying communities to its network, Broadway has not been immune to the impact of these issues. As a result, it’s been necessary to file for Administration to facilitate a restructure of the business and provide a stable platform to affect a sale.”
According to industry publication ISPreview, new fibre network operators are among the most vulnerable in the sector, due to issues including rising costs for building and leases, intense competition and the difficulty of securing a viable level of consumer take-up. In turn, this can put pressure on jobs and put investors off.
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