Broadway Partners, a rural fiber broadband infrastructure provider in Scotland and Wales, has filed for administration due to financial strain and rising interest rates, becoming the first casualty in the sector.
The company had ambitions to connect 250,000 homes and businesses but was unable to overcome soaring costs and competitive pressures.
The collapse has affected more than 130 jobs, with adequate funding to keep the company trading during the administration process.
Other fiber infrastructure players are expected to follow in the coming months, with BT's Openreach division dominating the market and Virgin Media 02 emerging as a big player.
The industry is facing consolidation due to supply chain and labor issues, rising costs, and adverse macroeconomic factors.