UK broadband stalls as full fibre growth offsets wider decline

Total broadband connections slipped to 28.91 million, with full fibre driving limited growth through Openreach and CityFibre as overall market saturation threatens

The UK broadband market continued to flatten in the second quarter of 2025, as Point Topic data showed only marginal movement in total connections and evidence that saturation is taking hold. Retail and wholesale fixed broadband lines slipped slightly to 28.91 million, down from 28.92 million in the previous quarter and 28.98 million year-on-year.

Net subscriber losses totalled 14,000, a modest improvement on the 88,000 lost in Q1, but the overall direction confirmed that expansion is now reliant on migration to full fibre rather than new demand.

Full fibre remained the sector’s bright spot. Coverage reached 77.8% of UK premises at the end of June, with 11.03 million active FTTP lines. Openreach once again set the pace, adding 1.1 million premises to its footprint to reach 19.1 million, including 5.2 million in rural areas. The operator also reported a record 566,000 net additions, taking its subscriber base to 7.09 million.

BT’s consumer arm saw a second consecutive quarter of growth, with 11,000 net broadband additions, bringing its total to 8.22 million, excluding business lines. Vodafone also posted solid results, adding around 44,000 broadband customers.

CityFibre’s momentum continued, with connections rising by 69,000 to 650,000 and penetration rates at 16% nationally. In its most mature markets, take-up reached 40%. The operator strengthened its financial position in July with a £2.3 billion funding round aimed at consolidation and M&A. Days later, Sky Broadband launched its fastest ever consumer products – 2.5 Gbps and 5 Gbps services – exclusively over CityFibre’s network, signalling some willingness by major ISPs to look beyond Openreach.

Altnets rely on pricing

Altnets collectively added 205,000 subscribers in Q2, up from 169,000 in Q1, taking their combined FTTP retail base to 2.96 million, a 41% increase year-on-year. Point Topic notes that altnets continue to capture share through competitive pricing, with some entry-level fibre packages available for under £20 per month.

Virgin Media O2 had another difficult quarter, shedding 51,000 broadband customers as churn increased under the One-Touch Switching regime. The operator’s total broadband base is down 1.17% year-on-year, with its full fibre penetration estimated at just 12%. TalkTalk also reported further losses, around 20,000, but secured £100 million in shareholder funding in July to reinvigorate its consumer brand and support its wholesale arm, TalkTalk PXC.

In the business segment, connections rose to 1.96 million, up from 1.87 million in Q1, with FTTP lines jumping to 950,000. BT’s business unit lost 6,000 lines, while Virgin Media O2 also struggled, despite its merger with Daisy Group completing in early August. The new venture, 70% owned by VMO2, will bring in an additional £125 million revenue in 2025 but faces a tougher outlook beyond 2026.

Infrastructure build rates remained strong, with Openreach averaging 81,000 premises passed per week and on track for five million in the fiscal year. By contrast, nexfibre slowed to 115,000 new premises in Q2, down from 165,000 in Q1. Telefónica scrapped plans for a wholesale NetCo entity, citing debt constraints.

Point Topic concludes that while overall broadband growth has plateaued, the transition to full fibre is reshaping market dynamics, with Openreach consolidating its lead, CityFibre positioning as a consolidator, and altnets applying sustained pricing pressure on the established players.

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