The chief executive of Liberty Global has claimed business secretary Jonathan Reynolds wants big telecoms companies to rescue struggling altnets.
At an industry conference this week organised by Bank of Ameroca, Fries said Reynolds wanted to see Liberty and other large players step in to acquire the companies. This week, CityFibre was linked to a potential cash bailout from Virgin Media O2 in which Liberty Global is a 50% shareholder.
Fries expressed a willingness to buy some the altnets – many of which are eating into the Virgin Media subscriber base – though quoted in the Financial Times he did not specifically say if CityFibre was on his mind.
“I was on the phone with Jonny Reynolds . . . the other day and he gets it: It’s not a good moment for the UK right now if fibre customers lose service and fibre investors lose money,” Fries said. “They’re anxious to see us and others [get] involved here, you know, and we will,” he added.
“I was on the phone with Jonny Reynolds . . . the other day and he gets it: It’s not a good moment for the UK right now if fibre customers lose service and fibre investors lose money,” Fries said. “They’re anxious to see us and others [get] involved here, you know, and we will,” he added.
Sources within the trade department told the FT that no one at the meeting remembers Reynolds saying he wanted a bailout of the altnets and any move would be a commercial decision for them.
CityFibre is the largest of the altnets that between them serve 16.4 million homes.
The altnets have between them received more than £17.4 billion of investment since 2020. However, they have been put under significant pressure by rising costs and interest rates.
