It seems that every conversation about public service reform involves technology. Artificial intelligence to help GPs manage caseloads. Platforms to run council services online rather than in person. Tools to cut red tape so teachers can teach and social workers can do social work. Digital ID to verify who you are.
These technologies are real and their potential is real. But there is a more fundamental question that is rarely asked: is our network infrastructure up to the task?
The whole case for technology and public service reform rests on an assumption that remains largely unexamined: that Britain has the right digital infrastructure to support it today and into the future.
This is why the next phase of the UK’s full fiber market matters so much – and why policymakers need to pay far greater attention to the health of the market that delivers it.
The full rollout of fiber has been transformative, but the next phase is uncertain
The full fiber advancements made in recent years have been truly remarkable. Coverage has increased from 17 percent to 78 percent between 2020 and 2025, driven by £21.4 billion of private investment and the emergence of alternative network providers (‘altnets’).
Three quarters of premises now have at least one alternative provider and a quarter have two. For a country that was not so long ago warning of broadband deserts, this is quite an achievement.
But according to The last report of the Assembly on the complete fiber marketcash flow is negative for all but one altnet. Amid growing concerns about the viability of many operators, market collapse could have significant implications for consumers, network competition, public services and public money.
Unlike utilities such as energy, there is no supplier of last resort in broadband. If operators fail, consumers face real disruption. And with taxpayer-backed initiatives like Project Gigabit and lending from the National Wealth Fund, public finances are also exposed. Gigaclear’s collapse cost taxpayers £100m. It will not be the last victim unless the market structure evolves.
Consolidation should strengthen competition
The entire fiber market needs to be consolidated. Ofcom has said as much, and the figures back it up. With many sub-scale operators competing for insufficient customer bases, the investment required for the next wave of services and innovation simply will not materialize. A market built on fragility will not, in the long run, serve the public interest – nor public services.
What matters now is how this consolidation plays out in the coming months and years – and whether the regulatory environment continues to support sustainable competition. Ofcom is currently reviewing Openreach’s new commercial offers, including conditional and geographically targeted pricing deals, and has rightly asked whether such offers could raise competition concerns.
If BT Openreach’s monopoly position were to continue to remain effectively unchallenged, there is a real risk that the incentives to invest rapidly, innovate and respond to the changing needs of consumers and the public sector would weaken over time.
Strong and active competition is essential to achieve the government’s objectives for this sector. Without it, future improvements, service quality improvements and the variety of wholesale and retail offers available to consumers and public services may be limited. In the long term, this would risk undermining value for money and the UK’s ambition to build a world-class digital infrastructure.
nexfibre’s £3.5 billion investment could help secure the next phase
The planned acquisition of Netomnia by nexfibre is set to create a combined footprint of around eight million premises by the end of 2027 and unlock £3.5bn of international investment in the UK. Real investment in infrastructure, right across the country, with real consequences for the public services that communities rely on, in almost 300 constituencies the length and breadth of the UK, from Bury North to Leeds West, Crawley to Kilmarnock.
Our plans include upgrading 2.1 million premises from cable to full fiber where schools, GP surgeries, council offices, libraries, businesses and families will be supported every day. And with our partnership with young people in the UK, we’re also providing free full fiber to over a thousand youth centers across the UK to tackle digital poverty.
Public service reform rests on strong digital foundations
When we discuss how technology and innovation can help public services deliver for communities – we must also ask whether Britain has the foundation of digital infrastructure to support today’s services and tomorrow’s innovations? To borrow a phrase from the Local Government Association’s Owen Pritchard, who spoke alongside me at the New Statesman Live Policy Conference this week, “you can’t drive F1 cars on dirt tracks”.
The government is right to focus on reforming public services. But reform cannot be carried out on fragile foundations. Artificial intelligence, automation and digital platforms will only improve people’s lives if the infrastructure under them is resilient, competitive and able to reach communities up and down the country.
We have made fantastic progress in recent years. But as we look ahead, it is vital that policymakers understand and engage with the real challenges facing the full fiber market.
Britain has shown it can build. The question now is whether it can create a strong enough market to support what comes next. If we are serious about public service reform, we must be serious about the digital infrastructure that makes it possible. This is Britain’s broadband moment – and it’s vital we get it right.
