Omelcom’s UK Business Development Manager Jamie Todd is leveraging a decade of industry experience to strengthen the manufacturer's status in the UK telecom market. Jamie is accelerating strategic actions to form critical collaborations with altnets and fibre providers to support long-term network development for both small and large-scale projects.
Fri, 26/07/2024 - 13:50
CEO Jeremy Chelot aims to leverage Netomnia and Brsk's combined scale and expertise to create the UK's largest full-fibre altnet, its third-largest full-fibre network overall, and its fifth-largest ISP. This will be achieved through an equal mix of continued organic growth and leading the sector's consolidation.
It is time to move beyond being altnets and become a national network, according to Chelot, who shares his post-merger roadmap for creating the UK’s third-largest fibre provider.
“Altnets have demonstrated an ability to deliver but the task now is to complete the job and unite to form a third network,” he said. “By merging our entrepreneurial spirit, technical expertise, and customer-focused approach, we're poised to lead this process.”
Netomnia’s merger with Brsk in June created a new wholesale network platform which is expected to be operating in September under a new brand. It boasts a network with 1.6 million premises Ready for Service and 150,000 customers as of June 2024.
“The merger has significantly enhanced our competitive position,” said Chelot. “Firstly our significantly expanding network footprint positions us to serve larger wholesale agreements, unlocking growth opportunities. Second, by joining forces with Brsk we gain immediate access to new markets, accelerating our expansion strategies.”
Chelot’s immediate priorities lie in seamless integration and swift market impact. He said: “We're finalising the merger in the coming weeks, pending regulatory approval. Our top priority is reaching three million premises by 2025 while maintaining a prudent approach to capital management.”
Netomnia and Brsk have so far leveraged just £300m in debt spend and aim to reach their combined 2025 milestone with £900m spent. The pair have collectively raised over £1.3bn of Capital. Its build machine continues to add one million premises Ready For Service each year and its customer acquisition team adds over 12,000 customers monthly.
“Our aggressive yet achievable goals will leverage Netomnia and Brsk’s resources and expertise to accelerate deployment efficiently,” he said. “We are committed to providing an alternative FTTP platform that offers a seamless network experience, unified pricing, and enhanced service quality across our expanded footprint.
“We're positioning ourselves as a scaled platform that excels in retail and wholesale network services.”
The merger has created a platform which is uniquely positioned to facilitate future consolidation due to its enhanced scale and reach. “Our own merger stems from strategic alignment between Netomnia and Brsk. We started the process with shared investor (Advencap) and a complementary geographical network, which allowed us to navigate the typical integration challenges facing other consolidators,” said Chelot.
“We are now closely monitoring the market and will be strategic in our M&A plans.”
The companies own experience has informed a three-principal approach to M&A. The first principle is value creation, with any potential acquisition needing to demonstrably enhance shareholder value and contribute to building a sustainable business. The second is strategic fit with potential acquisitions will need to expand Netomnia’s network footprint, bring in complementary technologies or enhance its market position.
The third principle is proven financial Discipline. Chelot added: “We're committed to reaching EBITDA positivity faster and maintaining our capital efficiency even as we pursue growth.
“It is crucial to understand that M&A is just one tool in our growth strategy. Our priority remains our solid organic growth plan. We're not just aiming for size, either. We are focused on innovation and optimizing our existing operations. We are committed to building the UK's most reliable and fastest fibre networks, setting new standards in digital infrastructure.”
According to Chelot, the merger will have a ripple effect across the entire UK telecoms industry. He firstly cited increased competition. “This positions us to rival industry giants like BT, Virgin Media, and CityFibre, driving innovation and potentially better pricing across the market.”
He also expects the deal to spark further industry consolidation, leading to a more robust and stable altnet sector. “The market wants to see more consolidation and we are delivering it.
“We've seen a false start with UPP (acquired by NexFibre) and Lit (acquired by CityFibre). The merger between Netomnia and Brsk is the largest consolidation to date, marking the beginning of a broader trend. However, I wouldn't be surprised if the pace remains slow for the next 12 to 18 months.”
