British Competition Authority Clears Nexfibre's Netomnia Deal Despite Market Concentration Concerns

The UK Competition and Markets Authority has given conditional approval to Nexfibre's £2 billion acquisition of Netomnia, the nation's second-largest alternative fiber network operator, though regulators expressed preference for rival CityFibre to have made the purchase instead. The CMA determined that a CityFibre-Netomnia combination would have created a stronger competitor to market leader BT's Openreach network, with the final decision scheduled for December 15. The deal would add 3.4 million premises to Nexfibre's footprint, bringing its total UK coverage to 8 million premises by end of 2027.

The Competition and Markets Authority's conditional approval reflects competing visions for Britain's broadband infrastructure. Nexfibre, controlled by Liberty Global and Telefonica alongside InfraVia, argued the deal creates necessary scale to challenge incumbent BT's Openreach dominance across the nation's fibre network. The regulator countered that an alternative scenario—where rival CityFibre acquired Netomnia instead—would have produced stronger competitive dynamics, allowing CityFibre to maintain its wholesale model serving multiple retailers like Sky and Vodafone.

The transaction hinges on remedies Nexfibre can propose by mid-October. Industry analysts suggest the company may withdraw rather than proceed if conditions prove onerous, given the CMA's skepticism toward the deal's competitive merit. The final determination arrives December 15, creating several months of uncertainty around £2 billion in planned investment and network expansion affecting millions of UK premises.