UK broadband services in the capital have been shaken by the news of the G Network internet service provider will be entering administration.
This development places one of London’s younger fibre providers under the control of insolvency specialists. Founded in 2016, G Network built its reputation on installing a proprietary full fibre network across central districts and competing with the established infrastructure of BT Openreach and Virgin Media O2.
Earlier this month the business was purchased by FitzWalter Capital, a firm known for dealing in distressed debt. Within days of that acquisition an application was made to the High Court to appoint administrators, a move that surprised some staff and marked the first significant failure in the altnet sector for several years. The G Network administration follows a period in which the industry expanded rapidly during the pandemic before encountering slower customer growth.
Alvarez & Marsal Europe LLP were formally appointed as joint administrators on Monday, January 12. The professional services firm said it would begin marketing the company to potential buyers in the coming weeks while maintaining day to day operations. G Network provides connections to around 25,000 customers and its cables pass approximately 400,000 homes in London.
In a message aimed at reassuring households and businesses, joint administrator Richard Beard said: “G Network will continue to trade as normal, with its full-fibre network operating as before and services being delivered to existing and new customers across London without interruption.”
The provider accumulated heavy borrowings while digging up streets to lay fibre lines. Analysts at New Street Research estimate that net debt exceeded £300million at the time of the sale to FitzWalter. Lenders including NatWest, Santander and Investec are expected to take a writedown as part of the G Network administration process.
The broader altnet market has also struggled. Research from Enders Analysis places combined sector debt at more than £9billion by the end of 2025, reflecting costly refinancings and customer numbers below early forecasts. More than 40 per cent of the UK population can access networks built by these challenger companies.
Beard added: “Our appointment as administrators provides a platform for a restructuring, and we will work closely with the management team to create a sustainable business. We understand that this will be an unsettling time for G Network’s employees. We appreciate their hard work and will be keeping them updated on the restructuring process.”
G Network previously attempted several sales before the recent takeover. Following the deal, senior management roles were made redundant and further positions could be at risk, according to a person briefed on the situation. FitzWalter Capital did not immediately respond to requests for comment.
A statement on the company website emphasised that sufficient funding had been secured for the administration period and that service standards would be maintained. The notice described G Network as a London based full fibre broadband provider delivering connectivity to residents, businesses and infrastructure in central areas.
The administrators believe the underlying assets remain attractive despite the financial pressure. Beard concluded: “The company benefits from a robust network and a strong customer base. We would like to invite any parties interested in acquiring the business to contact us.”
Industry observers expect further consolidation after the G Network administration, with several altnet operators predicted to seek buyers in the coming months. Karen Egan of Enders Analysis said the takeover by a distressed debt specialist was difficult to comprehend as a strategic sale and questioned how easily the business could be sold on again.
For customers, the immediate message is continuity. Alvarez & Marsal stressed that it did not anticipate any adverse impact and that installations and support would proceed as before. The outcome of the G Network administration will be watched closely as a test of confidence in London’s alternative broadband market.
