Freedom Fibre Announces UK Job Cuts Amid Broadband Industry Challenges

The UK’s competitive broadband landscape has taken a toll on another alternative network provider. Freedom Fibre, which has grown its full fibre network to cover 315,000 premises across England, has notified staff of impending redundancies.

Merger and Lost Contracts Put Pressure on Freedom Fibre

Last year saw Freedom Fibre complete a merger with VX UK Holdings Ltd, backed by InfraBridge. However, the operator recently lost a £43 million Project Gigabit contract to bring full fibre to 15,000 rural premises in Cheshire.

While Freedom Fibre still holds a £24 million contract to connect 12,000 rural homes in North Shropshire, the loss of the Cheshire deal was a significant blow. The company is also grappling with the same challenges facing other network builders, including rising costs, high interest rates, and fierce competition.

Employees Announce Redundancies on LinkedIn

Numerous Freedom Fibre employees, particularly from the network build team, have taken to LinkedIn to announce they are at risk of redundancy. Posts with a common message are proliferating: “Hi everyone! I’m seeking a new role due to being placed at risk of redundancy and would appreciate your support. If you hear of any opportunities or just want to catch up, please send me a message or comment below.”

Freedom Fibre has not provided an official comment on the situation, likely due to the holiday weekend and the sensitive nature of the redundancies.

Focusing on Commercialization Over Expansion

As of November 2024, Freedom Fibre’s gigabit-capable network passed 315,000 premises. The company originally aspired to reach 2 million homes and businesses across England and Wales.

However, like many smaller players in the market, Freedom Fibre may now need to prioritize customer acquisition and revenue growth over network expansion. This pivot could prove challenging as the operator still has obligations under its Project Gigabit contract in North Shropshire.

Financial Performance and Wholesale Partnerships

Freedom Fibre’s most recent accounts show revenue growth of 114% to £623,185 in 2023, up from £291,000 in 2022. Capital expenditure increased by 50% to £30.69 million, while the company reported a total loss of £12.65 million, compared to a £7 million loss the previous year.

The operator offers its services through wholesale partnerships with several broadband providers, including TalkTalk, iDNET, Home Telecom, Fusion Fibre Group, Squirrel Internet, and Yayzi.

Industry Consolidation on the Horizon?

As smaller alternative network providers face mounting pressures, industry experts anticipate a wave of consolidation in the coming months and years. Struggling operators may seek fresh funding rounds or look to be acquired by larger players to remain viable.

The challenges faced by Freedom Fibre underscore the difficulties of building and operating broadband networks in an increasingly competitive and cost-constrained environment. As the UK strives to achieve nationwide gigabit coverage, the industry will likely continue to evolve and adapt to these changing market conditions.