
Alternative network provider and UK ISP Truespeed has today confirmed that they’ve “agreed in principle” to merge with County Broadband in order to create a single operator covering 177,000 premises (RFS) and 40,000 customers. Both operators have built full fibre (FTTP) broadband networks across various rural parts of England.
At present Truespeed is mostly focused upon serving rural premises in parts of Devon, Wiltshire and Somerset, where they’ve already covered over 109,000 premises (RFS) and are home to over 24,000 customers. But the operator originally held an “ambitious” overall target of reaching 500,000 properties, although that took a hit after some job losses and a build slowdown (here and here).
Meanwhile, County Broadband has been busy rolling out their own FTTP network across rural parts of Cambridgeshire, Essex, Norfolk and Suffolk in England (i.e. they’ve been building to over 250 villages, but we haven’t had any detail on premises passed or take-up). The operator once held a similar ambition of reaching 500,000 premises, but that too suffered a setback in 2023 after they confirmed redundancies (here).
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Suffice to say that both operators are known to have been under many of the same strains as other players in the wider UK market (i.e. rising build costs, high interest rates and competition). As a result, we weren’t surprised when several sources informed us last year that the pair were working toward a merger agreement (both are backed by Aviva), although it’s taken until now for them to finally confirm the development.
The merger brings together two “highly complementary networks and teams“, combining Truespeed’s presence in the South West with County Broadband’s footprint across East Anglia. The combined entity – Truespeed Communications Group Ltd – will serve 177,000 fully Ready-For-Service premises, with 40,000 customers already connected to the network and will be led by James Lowther (Truespeed’s current CEO).
James Lowther said:
“This merger represents an important milestone for both companies and for rural broadband in the UK. Both companies have invested extensively in building ultrafast broadband for underserved parts of the country. Now, we’re coming together to ensure those networks deliver the best possible experience for our customers — today and for decades to come.”
John East, Chairman of County Broadband, said:
“We’re proud of what we’ve built at County Broadband, and this merger is the logical next step for our business and our customers. Together with Truespeed, we’ll be able to even better serve our communities and help to bridge the digital divide.”
The new group is said to have the “full backing of Aviva Investors Limited” and its “focus will be on combining the strengths of both businesses to optimise future growth within its existing footprint“. In practice this means a greater focus on growing customer take up, unlocking operational efficiencies, enhancing customers’ experience and “[providing] an even stronger platform for future investment and further consolidation.”
Following completion (we’re told this will occur in August 2025), customers of both providers have been told to “expect a seamless transition” with “no change to their current services“. Both businesses will also continue to trade under their own names for the “immediate future“. But there was no word on any fresh investment, plans for future network expansion or the possibility of a revamped wholesale offer to help rival ISPs access their network.
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Crucially, the combined network is still relatively small in terms of premises passed (it may become a target for consolidators), although the rural nature of both networks does mean that they have quite a wide geographic reach.
If they are both owned by Aviva investors, why has the merger not been attempted before now?
It will also cost a pretty penny and take perhaps up to two years (though a recent example of a merger took longer). At about 22pc take-up, they are not going to have much spare cash for a while. At the same time, due to their geographical spread, will there be much to be saved through synergies?
Partly because the scale of county is so small it is probably a huge hassle
@John:
Indeed. I am guessing that most of the savings will come from the elimination of duplicate roles. The delay of a decision on common branding would also seem to be counter intuitive if they were trying to cut outgoings.
Don’t be daft, Truespeed don’t know how to cut senior roles. They just give them payrises and extra shares!!! They’ve managed to blow £175 million since 2018 achieving absolutely nothing in terms of growth.
@ SquareSausages: I am guessing you have insider information to be able to make such a claim.
Then those areas get over built by NextFibre or OpenReach etc. and the main ISPs advertise they are available. What will the take up be then? Guess it depends on incentives, and how happy people are for another hike in their wall…..
Truespeed built in this village last year, followed by Nexfibre and Openreach. Some take up, but now those with OR ISPs are upgrading.
County broadband have been struggling for a while now. They need reinvigorating and some life but they are hemorrhaging customers where i live since openreach built their network. Most of the complaints are said to be during peak times that their speeds are just too slow
interesting