• London-based fibre broadband operator G.Network has been sold to distressed debt specialist FitzWalter Capital after failing to secure an industry buyer, marking a warning for the UK’s alternative network market.
• The sale highlights mounting financial pressure across the UK “altnet” fibre sector amid high debt, rising costs and intense competition, with lenders expected to take write-downs on investments.
What happened: sector pressures surface
G.Network, one of the UK’s alternative full-fibre broadband builders, has been acquired by FitzWalter Capital, a distressed debt specialist, following a prolonged struggle to find a strategic buyer, industry sources told. The sale, triggered by pressure from the company’s lenders, underlines widening stress in Britain’s fibre broadband market.
The London-focused operator had spent several years building out its network, which is understood to pass around 420,000 premises in the capital, yet its customer base reportedly remained at approximately 25,000 at the end of 2025, according to analysis by Enders Analysis cited by the Financial Times. High build costs, challenging economics and intense competition from larger operators and other alternative networks contributed to a financial shortfall.
G.Network’s shareholders, including Universities Superannuation Scheme (USS) and Cube Infrastructure Managers, had previously instructed investment banks to seek potential suitors, including infrastructure peers, over the past year, but those efforts did not result in a sale to an industry participant. Creditors such as NatWest, Investec and Santander are expected to realise losses on their loans.
The distressed sale is the outcome of elevated debt levels across the alternative network (“altnet”) segment, with end-2025 figures indicating more than £9 billion of net debt among UK altnets. Analysts have characterised the deal as a key moment for the sector, signalling that investor patience may be waning.
FitzWalter Capital, known for restructuring distressed assets, is expected to seek a relatively quick resale or consolidation of G.Network’s assets rather than operate the business long-term, industry commentators told the Financial Times.
Why it’s important
The sale of G.Network highlights critical vulnerabilities in the UK’s fibre broadband market, particularly among smaller firms that set out to challenge larger incumbents such as BT Openreach and Virgin Media O2 with full-fibre solutions. While alternative networks have contributed to expanded coverage and choice for customers, many have struggled to turn infrastructure investment into sustainable subscriber growth at scale.
High capital expenditure associated with trenching and network deployment, rising interest rates and intense competition for both customers and financing have stretched the altnet model. The fact that G.Network built a sizeable network footprint yet failed to attract a commensurate customer base raises questions about the scalability and economic viability of some altnet business plans.
The broader sector has seen other signs of consolidation pressures. Analysts note that some networks have paused or slowed build programmes, while others have explored mergers or asset sales to larger peers. The G.Network development could presage further consolidation among smaller operators if financing remains scarce and customer-take rates do not improve materially.
For consumers, the impact of such financial stress is ambiguous. On one hand, consolidation could lead to more robust service provision and investment by stronger players. On the other hand, reduced competition might lessen price pressure and choice in certain areas, particularly urban markets like London where multiple networks had previously competed directly.
The distressed sale also underscores the importance of careful assessment of telecom infrastructure investment risks. Investors and policymakers may need to consider whether current regulatory frameworks and support mechanisms sufficiently balance the benefits of infrastructure expansion with long-term financial sustainability.
As the UK continues to pursue ambitious national broadband goals — including widespread full-fibre coverage — the sector’s capacity to adapt to economic headwinds without jeopardising competition or service quality will remain under scrutiny.
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