London Full Fibre Broadband ISP G.Network Hunting for a Buyer

Alternative network operator G.Network, which has spent the past few years building a gigabit speed Fibre-to-the-Premises (FTTP) broadband ISP network across parts of central London (here), has reportedly engaged investment bankers at Nomura and Jefferies as advisers to help it explore the potential of a future sale.

The news follows shortly after the operator secured an additional investment of £85m from long term equity investor USS to support their “next phase of growth“ (here), which itself was on top of last year’s commitment by the same investor for “up to an additional£150m (here).

NOTE: The company’s last accounts to March 2023 (here) said they had covered a total of 330k “connectable premises“, but an independent estimate in Jan 2024 put them closer to 248k (here).

However, despite the funding boost, G.Network only recently resumed their build programme after a long pause and job cuts (here). Many other network operators have suffered similar issues, partly due to high interest rates, rising build costs and an aggressively competitive environment – particularly in urban areas – that can make it harder to grow take-up.

According to a new report on Sky News, G.Network, which has itself declined to comment, are allegedly considering a sale (it’s not the first time we’ve heard of such discussions). Both CityFibre and CommunityFibre are among those that are said to have expressed an interest in acquiring the operator, although CommunityFibre have had plenty of their own problems (here and here) and would be taking on a much bigger risk if they won a bid.

At the end of last month the operator claimed that their business was “performing well and successfully executing against its strategic plan of creating a better-connected London, delivering improvements in revenues, productivity and customer service“. 

Residential customers of G.Network typically pay from £19 per month for a 150Mbps (50Mbps upload) service on a 24-month term with free installation (£24 thereafter), which rises to £30 for their top 900Mbps plan (£35 thereafter). Shorter 12 and 1 month contracts are also available, albeit at extra cost, and a symmetric speed 900Mbps plan also exists.

Recent Posts