Thousands of rural homes in North Shropshire and West Herefordshire will finally get superfast broadband after Openreach agreed to complete projects abandoned by smaller internet providers.
The BT subsidiary has signed contracts to deliver full fibre coverage to 8,500 premises in North Shropshire and an additional 6,200 properties in West Herefordshire, stepping in after Freedom Fibre and Zzoomm withdrew from their original commitments.
Smaller Providers Pull Out Mid-Project
Freedom Fibre abandoned its North Shropshire contract in June 2025 after completing just 3,500 of the 12,000 premises it had promised to connect. The company cited “challenging ground conditions and higher than expected construction costs” for the withdrawal.
“We waited two years for them to connect us, watching the cables being laid down our lane,” said Margaret Phillips, 67, who runs a bed and breakfast in Market Drayton. “Then suddenly they just stopped working and left everything half-finished.”
Zzoomm faced similar difficulties in West Herefordshire, pulling out of its contract after connecting fewer than 1,000 of the promised 6,200 properties. The company had secured the initial contract in March 2024 as part of the government’s £5 billion Project Gigabit programme.
Government Forced to Find New Contractors
Building Digital UK (BDUK), the government body overseeing rural broadband rollout, launched emergency procurement processes to find replacement contractors. The delays left rural communities in digital limbo, with many still relying on connections slower than 10 megabits per second.
“My son can’t do his university coursework properly because the internet keeps dropping out,” explained Sarah Jenkins, a farmer’s wife from Pembridge. “We were promised gigabit speeds by Christmas 2025, then Easter 2026, and now we’re told maybe summer 2027.”
BDUK confirmed Openreach will begin construction work in both areas by September 2026, with completion scheduled for December 2027. The contracts are worth approximately £47 million combined.
Rural Areas Bear Brunt of Provider Struggles
The withdrawals highlight mounting challenges facing alternative network providers (altnets) attempting to serve rural markets. Industry analysts point to higher construction costs, complex planning permissions, and lower population densities as key factors driving companies away from countryside contracts.
Freedom Fibre reported losses of £23 million in its most recent accounts, while Zzoomm’s parent company has struggled with debt refinancing since late 2024. Both companies continue operating in urban areas where deployment costs remain manageable.
“The economics just don’t add up in rural areas for smaller operators,” said telecommunications analyst David Morrison from CCS Insight. “They underestimated costs and overestimated their ability to deliver at scale.”
Openreach Promises Reliable Delivery
Openreach, which maintains the UK’s largest fibre network, expressed confidence it can complete both projects on schedule. The company has delivered 97% of its Project Gigabit commitments to date, connecting over 400,000 rural premises since 2021.
“We have the engineering expertise and financial resources to serve these challenging rural locations,” said Openreach regional director Kate Williams. “Our teams are already conducting detailed surveys to ensure we can connect every promised premise.”
The company will use existing telegraph pole infrastructure where possible, reducing installation costs and environmental impact. Properties requiring new underground cables will be prioritised based on current connection speeds and local demand.
Compensation Questions Remain Unanswered
Residents affected by the delays want clarity on compensation arrangements. Some have purchased expensive satellite broadband packages or upgraded mobile contracts while waiting for promised fibre connections.
Local MP James Richardson has called for BDUK to establish a hardship fund for affected households. “Families and businesses have suffered real financial losses because of these failed contracts,” he said during a parliamentary debate last month.
BDUK has not responded to requests for comment on potential compensation schemes, stating only that it is “focused on delivering connectivity as quickly as possible.”
Broader Impact on Government Targets
The contract failures threaten the government’s target of achieving 85% gigabit coverage across the UK by 2025. Official statistics show current coverage stands at 78%, with rural areas significantly lagging behind urban centres.
Project Gigabit was designed to reach the final 20% of UK premises considered uneconomical for commercial providers. The programme has faced repeated delays, with original completion dates pushed back from 2025 to 2030.
Industry observers expect further contract withdrawals as economic pressures mount on smaller broadband providers. Rising interest rates and construction costs continue squeezing margins across the sector.
Openreach’s intervention in North Shropshire and West Herefordshire signals a potential shift toward relying on established operators for the most challenging rural deployments, despite government preferences for promoting competition through alternative providers.
