The UK's Competition and Markets Authority has provisionally found that nexfibre's purchase of Substantial "may be expected to result in a substantial lessening of competition" in the wholesale supply of fixed broadband. It published the finding on 2 October [1].
nexfibre is a fibre network owned by Liberty Global and Telefónica, which also own Virgin Media O2, and by InfraVia, a private equity investor. Substantial owns the fibre networks Netomnia and Brsk and the internet provider YouFibre [1].
"This is not our final decision," the CMA says. Comments are due by 5pm on 23 October, and the inquiry's deadline is 15 December [1][2].
What it covers
The CMA's view rests on what would have happened without the deal. Substantial was put up for sale in 2025, and the CMA thinks the most likely alternative buyer was CityFibre, a rival network that sells wholesale access to providers including Sky and VodafoneThree [1].
By the CMA's analysis, CityFibre, Openreach and nexfibre would all have competed across about 32% of nexfibre's network had CityFibre bought Substantial. After this deal, that share would be about 18% [1].
The companies argued the deal would create a stronger wholesale challenger to Openreach. The CMA provisionally finds that benefit "not merger-specific" and not enough to prevent the harm [1].
It says a weaker wholesale market would reach households and businesses through their providers' prices, "disproportionately" in the midlands and north of England, where Substantial's network is concentrated [1].
What it does not tell you
The outcome. The companies have until 16 October to submit proposed remedies, and the CMA will then consult on them [1].
The wider market. The CMA says its finding is about this deal's network overlap and does not reflect "any view on consolidation in the wider altnet sector" [1].
Comments