Airband, a UK alternative network (altnet) broadband provider focused on rural areas in England and North Wales, has agreed to transfer control of the business to its lenders. This development follows a period of restructuring, job losses, and a strategic shift towards commercializing existing infrastructure rather than expanding new builds. Airband had previously initiated a formal sale process to find a new long-term owner, with its financial restructuring expert, Nick Pike, appointed as an Interim Independent Director to the board.
The company, backed by the Aberdeen Group with over £200 million invested, has been grappling with pressures common to the altnet sector, including high interest rates, rising construction costs, and intense competition. Its most recent annual accounts for 2024 revealed a 37% increase in revenues to £6,667,000, but operating losses also grew to £47.23 million, up from £37.06 million in 2023. Total assets were reported as £179.81 million, against total liabilities of -£224.92 million. Despite these figures, Airband had projected achieving EBITDA positivity by 2028.
Aberdeen, primarily an equity investor, is reportedly unwilling to continue funding the business, thus ceding control to the lenders, who now bear the primary financial exposure. This situation is reminiscent of Gigaclear, another altnet where lenders took control and accepted a significant haircut. The move effectively puts Aberdeen's substantial investment at risk, with the amount, if any, it will recoup remaining uncertain. The preferred outcome for all parties still remains a sale of the business, potentially with lenders agreeing to reduce the company's debt to make it more attractive to buyers.
Airband's network currently covers more than 440,000 premises across 200 communities in seven counties, including 175,000 premises with fiber-to-the-premises (FTTP) and 265,000 premises via wireless technology. The company also recently expanded its FTTP reach through a partnership with Openreach and serves 30,000 customers. This situation highlights the broader challenges faced by UK altnets, which have seen lower-than-expected customer uptake for fiber, higher operational costs, and the need for significant consolidation within the sector.
