F&W Networks is another full-fibre builder feeling impact of poor economy

Another day and another full-fibre builder who has been trying to build as fast as possible is reported to be making redundancies. While some will no doubt be along to say that it is the fault of those running these alt-nets, that we have a raft of take-overs or scaling back of roll-out, the impact of Government policies and big jump in interest rates are likely to be the biggest force driving FTTP firms towards extinction.

In the case of F&W Networks, Mark over on ISPreview has managed to see a statement from F&W Networks to the communities of South Godstone and Godstone to inform them they cannot proceed with their voucher build due to a changing focus.

We are writing to inform you of a significant change in priorities and focus for F&W Networks, which will have implications across all our network projects, including the full fibre Voucher Scheme in Godstone and South Godstone.

F&W Networks has decided to reallocate its resources to enhancing sales within our existing network. Unfortunately, this shift in focus will impact the Voucher Scheme in Godstone and South Godstone. After a thorough reassessment of our financial priorities, we regret to inform you that F&W Networks cannot proceed with these Voucher Scheme builds.

While we remain committed to regularly reviewing our business priorities, we must acknowledge the pressure from BDUK to complete Voucher Schemes quickly. This means that it is unlikely that these schemes can be built in the future. This decision is especially difficult considering the high level of community interest shown over the last 12 months.

F&W Networks on Broadband vouchers

This shift in priorities is much more than dropping out of a couple of Government Gigabit Voucher projects. This seems to mean a scaling back of roll-outs and a focus on improving take-up. In short, rather than continuing to increase debt, which is now a lot more expensive to service than 12 months ago, they are going to focus on getting people to sign-up.

In terms of footprint, ISPreview is quoting F&W Networks as passing 360,000 premises, up from 250,000 in February 2023. At first glance of our maps that looks possible, especially with the densely populated areas of Ealing appearing in the last few months. Unfortunately, after a lot of work throughout July and August, the mapped footprint is actually just 128,850 premises that are Ready for Service (RFS). If we include pre-order locations, this jumps to 240,000 premises. We will in October trawl back through the 112,000 pre-order premises to see which are now RFS. A very quick check of a few of the largest postcodes showed no immediate change today. 

In terms of shifting the priority to take-up, a big part of the challenge will be that of the 128,850 premises we have mapped, 76,650 have the choice of another FTTP network and some 21,234 are covered by two other FTTP networks in addition to F&W Networks.

Residents of South Godstone and Godstone will be frustrated as there were at least two local meetings (Nov 2022 and April 2023). In terms of public money, no voucher money will have been handed over as this only happens once the network has been built, but there will have been time spent on the vouchers, and now the area needs to be added back into the pool as needing Gigabit roll-out work. Oxted to the east has seen more FTTP roll-out by Openreach, and Blindley Heath to the south as part of the Fibre First programme, and as part of the old Superfast Surrey project, there is some Openreach FTTP in the area.

Update 12:38: F&W Network has provided a statement:

“Following a period of significant growth, F&W Networks is realigning its business strategy, with a particular focus on driving up utilisation of its full-fibre network footprint. As a result, the company will focus on gaining market take up rate in the coverage areas before accelerating growth on the build plan again. This has necessitated some minor departmental restructuring, and the company has worked closely with the relevant teams.

As the market matures, it is sometimes necessary to consider such realignments but a measured approach to expansion and a continued focus on customers will ultimately ensure the long-term success of the company.”

F&W Network Statement