UK Broadband Provider Enters Administration After Rats Damage Cables
A significant UK broadband provider, G Network, has entered administration following the failure of its rescue plan. The company served over 416,000 premises, predominantly in London. This decision was made earlier in the month as rival Community Fibre considered acquiring its assets.
Community Fibre Withdraws from Deal
Community Fibre opted out of the acquisition due to concerns about extensive rat damage to G Network’s cables. Graeme Oxby, the CEO of Community Fibre, explained to The Telegraph that the cost of repairing the damage was prohibitively high. He noted, “Rodents like ducts and they like fibres which are very tasty.” He further expressed concerns about the structural issues that would require costly repairs.
Background of Financial Troubles
FitzWalter Capital, a firm specializing in distressed asset acquisition, has requested to appoint administrators for G Network. This move followed their recent takeover of G Network from its previous owners, the USS pension fund and Cube Infrastructure Managers. As the alt-net sector faces potential mergers and more collapses, G Network’s failure highlights the mounting financial pressures on alternative broadband providers.
Challenges in the Alt-Net Sector
G Network was established to compete with BT, but rising operational costs led to its downfall. Despite this, Graeme Oxby maintains that some alternative networks can thrive amidst BT’s dominance. He commented, “Clearly there are going to be the distressed consolidations, maybe lender-led or specialist-led, but we don’t feel that consolidation is the only answer.”
Wider Impact of Rodents on Broadband Services
Rat-related issues are not isolated to G Network. In Doncaster, similar problems affected both residents and businesses last month. Labour Energy Secretary Ed Miliband highlighted the impact of “rodent damage” and questioned Openreach about their future preventive measures against outages.
- G Network: Entered administration while serving over 416,000 premises.
- Community Fibre: Withdrawn from acquiring due to rat damage concerns.
- FitzWalter Capital: Apply for administration appointment after takeover.
- Financial Trends: Analysts predict further challenges in the alt-net sector.
The collapse of G Network emphasizes the vulnerabilities faced by broadband providers in the UK, especially in light of external threats such as rodent damage. The future of the alt-net sector remains uncertain as companies navigate financial challenges and competition from established players like BT.
