ISP G.Network Seek £200m to Boost Urban UK Full Fibre Rollout

UK ISP G.Network, which is currently deploying a new gigabit-capable (10Gbps) Fibre-to-the-Premises (FTTP) based broadband network to homes and businesses across parts of central London, is reportedly seeking an investment boost of around £200 million in order to accelerate their future roll-out plans.

The provider, which has already hoovered up around £65m of private investment between 2017 and 2018 (here), first started their civil engineering work on King Street (St James / W1 postcodes) in January 2019 and since then they’ve begun FTTP builds around parts of Mayfair, Camden, Marylebone, Tower Hamlets, Kensington & Chelsea, Hackney and Bayswater etc.

We last spoke with G.Network about the progress of their build last month and at that time they had covered 75,000 premises (up from 40,000 in September 2019) and thus it won’t be too long before they pass the key milestone of 100,000 premises (the aim of their initial build is to complete 120,000 premises passed). The current build rate is c.10,000 premises per month.

Naturally the operator will want to continue their work and that requires money. According to Sky News, the provider has hired investment bankers from Rothschild to help find around £200m from the sale of new shares and private debt markets. The strength of their existing build suggests that it shouldn’t be too challenging for them to find the funding they want.

Residential packages tend to start from £28 inc. VAT per month for an unlimited 150Mbps (50Mbps upload) service that includes a free wireless router and there’s a £50 connection charge (free with a voucher). There’s no mention of a minimum contract term for this plan so we believe it’s a 30 day arrangement.

By comparison the top package costs £57 per month (currently reduced to £48) for a symmetric 1Gbps speed, which is said to be available in either 1 or 2 year contracts.