Vulture fund puts London broadband provider into administration

Core Viewpoint - The administration of G Network by FitzWalter Capital highlights the financial struggles of smaller broadband providers in the UK, indicating a potential wave of consolidation among BT challengers known as "alt-nets" [1][4]. Company Summary - G Network, a London broadband provider, has accumulated debts of £300 million while serving only 25,000 customers [2]. - The company had ambitious plans to expand its network to 1.4 million homes in London with over £1 billion in investments but has only reached around 400,000 premises due to financial constraints [6][7]. - FitzWalter Capital, which recently took control of G Network, is now seeking to sell its fibre broadband network and customer base [2][1]. Industry Summary - The alt-net sector collectively lost £1.5 billion in 2024, despite an increase in customer numbers, as rising operating and interest costs outpaced revenue growth [5]. - Many broadband firms in the alt-net industry have heavily borrowed to build full-fibre networks, but increasing interest rates and lower-than-expected customer uptake have led to financial difficulties [4]. - The collapse of G Network may signal further consolidation in the alt-net industry, as smaller firms struggle to survive [4].