Recent M&A activity shows that delayering is now affecting FTTP delivery in Asia and North America

M&A activity in the FTTP market has slowed down since the start of 2023, and valuations per premises or per activated line, as recorded in Analysys Mason’s FTTP valuation tracker, appear to be lower than at their peak 3 or 4 years ago. Certain heavily overbuilt markets with tens, if not hundreds, of local altnets look ripe for consolidation, so it is perhaps surprising that more has not happened.

However, there are two key trends that may result in an increase in activity.

• Some of the more significant deals have been in regions that have hitherto had relatively low levels of M&A activity (Asia–Pacific and North America).

• There is a very clear trend towards deals that involve a delayering of acquisitions into netcos and servecos.