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Greg Mesch, the original founder and current CEO of the UK’s largest alternative full fibre (FTTP) broadband network for ISPs, CityFibre, is reportedly to step down after setting the Openreach competitor up some 14 years ago in January 2011. The move comes shortly after the operator secured a crucial UK funding agreement worth £2.3bn (here).
CityFibre has so far deployed their Fibre-to-the-Premises (FTTP) network to cover around 4.5 million premises (inc. “almost” 700k customers) and they’ve long aspired to reach up to 8 million UK premises – representing c.30% of the UK. But their original target of hitting that by the end of 2025 will be missed, and they’ve more recently been looking to boost coverage via greater consolidation of rival networks (here and here), while also having to deal with some of the same pressures as many other networks (e.g. high interest rates, rising build costs and competition).
Despite the challenging climate, it’s hard to ignore how much of a dramatic impact CityFibre has had on competition at the physical infrastructure layer in the UK. The operator was one of the first real scale challengers to the established giants of Openreach and Virgin Media, which played a role in encouraging the incumbents to up their game and deploy their own FTTP networks at scale. But big changes are now afoot at the top of Cityfibre.
According to the FT (paywall), Greg Mesch will reportedly be leaving his role as CEO for personal reasons and with immediate effect. Greg is to be replaced by the company’s current Chief Operating Officer (COO), Simon Holden, who is a former Goldman Sachs banker (credits to Ionide for spotting this news).
However, it’s claimed that Mesch will remain with CityFibre in a new role as vice-chair at the company, although CityFibre has yet to confirm any of this officially. Otherwise, there’s no immediate change with CityFibre’s current strategy (yet), which continues to focus on securing deals to acquire several more alternative networks (we’re expecting another 3-4 in the near future) and expanding its own build via their state-aid backed Project Gigabit contracts.
UPDATE 11:56am
The news has now been officially confirmed.
Steve Holliday, CityFibre’s Chairman, said:
“The Board would like to pay tribute to Greg’s extraordinary vision, leadership and impact. Over the last 15 years, he has been tirelessly committed to transforming the UK’s telecoms market for the benefit of consumers and the broader economy. Under his leadership, CityFibre has emerged as an unstoppable force in UK infrastructure, and I am delighted that he will continue to contribute to its future as Vice Chairman.
In Simon Holden, we have a proven leader who has helped shape CityFibre’s strategy and operations. His sector expertise and deep institutional knowledge make him the ideal person to guide CityFibre through its next stage of growth. Under Simon’s leadership, CityFibre will stay firmly focused on executing its long-term strategy, expanding its market presence, and delivering lasting value as the UK’s full fibre challenger.”
Greg Mesch, Vice Chairman of CityFibre, said:
“Founding and leading CityFibre over the past 15 years has been the privilege of a lifetime. I’m incredibly proud of what our team has achieved, unleashing digital infrastructure competition to drive investment and innovation, and unlocking immeasurable benefits for consumers, businesses and the UK. We have overcome many challenges, and I can say with confidence that we have helped change the country for better, for ever.
After 15 years at the helm, the company is in the strongest shape ever, and it’s the right moment for me to step back from day‑to‑day operations whilst continuing to support CityFibre’s long‑term direction as Vice Chairman. Simon has been central to our success since he joined six years ago, and I have every confidence in his leadership. I look forward to backing him and our mission in my new role.”