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G.Network Secure £150m Investment to Boost London Full Fibre Build UPDATE

Wednesday, Jul 19th, 2023 (9:21 am) - Score 3,192
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London-focused ISP and broadband network builder G.Network, which until today had been investing around £1bn to roll-out a new Fibre-to-the-Premises (FTTP / XGS-PON) network in the city, has today announced that they’ve secured a funding boost of up to £150m from principal investor USS.

The operator, which last year claimed to have already covered 400,000 premises across London (we haven’t had a solid update since then) and was recently spotted testing Nokia’s 25G PON technology (here), previously held a long-term aim of covering 1.3 million premises by around the end of 2026. But doubts were cast over the viability of that after the operator revealed in May 2023 that around 230 jobs were due to be cut (here).

The good news today is that G.Network has secured a critical investment boost of “up to an additional£150 million from principal investor USS. According to the announcement: “The recently completed strategic review places both the customer at the heart of G.Network and the business on an accelerated path to profitability. Management is pleased with the significant improvements already achieved in productivity, revenues, and customer service, and encouraged by the ongoing momentum across the business.”

The operator expects the new investment boost to help drive both “revenue growth and the build out” of their central London network. G.Network has also announced several senior appointments, with Jon Hurry (Chief Commercial Officer – CCO) joining from BT, Carl Grose becoming Chief Operating Officer (COO) and Rod Day becoming Chief Financial Officer (CFO) – replacing Simon Kilonback.

Kevin Murphy, Chief Executive, said:

“I am delighted with today’s announcements and the continued investment and support from USS which underpins our growth strategy and illustrates their confidence in the opportunities we have ahead.

Being able to attract executives of the calibre and track record of Jon, Carl and Rod is a great reflection on the business that we are building at G.Network and I have no doubt that they will all make an invaluable contribution in the next phase of our growth strategy and beyond.

On behalf of G.Network, I would like to thank Simon for everything he has done as Chief Financial Officer and we wish him well in his new exciting role.”

Residential customers of the service typically pay from £22 per month for a 150Mbps (50Mbps upload) package on a 24-month contract term (inc. £29 one-off installation fee), which rises to £48 for their top 1Gbps (symmetric) tier with free installation (currently discounted to £24 for the first 6-months).

We did ask G.Network if they were able to provide an update on their current network coverage and to clarify whether the target for 2026 still exists, although they chose not to give use an answer to those specific queries. But their next set of annual accounts should provide some clarity.

UPDATE 21st July 2023

We’ve recently had some reports of more redundancies occurring at G.Network, beyond those of the original announcement. As we understand it, this reflects a smaller voluntary redundancy programme that started two weeks ago, which has resulted in net role reductions of less than 30 – this time from those in management and contracting roles.

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Mark-Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook and .
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Comments
26 Responses
  1. Avatar photo John says:

    Lol 1.3m is about Community Fibres current number, which they’ll attempt to overbuild on

    Crazy cash burn

    1. Avatar photo insider says:

      great statement, not much fact behind it though.

    2. Avatar photo John says:

      Cool story bro

      Go check verified TBB data

      There is not much left to avoid overbuild in London

    3. Avatar photo i know more than you says:

      having something available in a postcode, doesn’t mean the area is covered, for all of GN’s issues, do you really think that a business would be overbuilding just to land grab? its not all about THP anymore. its about a revenue stream from connected customers and balancing the where you build next with the investment you have.

    4. Avatar photo John says:

      Ok GN employee who believes if a postcode is covered then someone can’t get service. That says loads about GN coverage

    5. Avatar photo alt net Ned says:

      GN are only selling to serviceable properties, and that number will be significantly less than the numbers they have built to.

    6. Avatar photo Greyscale says:

      There are plenty of areas in London that still don’t have any proper fibre coverage, particularly in zone 3 and outwards. Haringey for example has hardly any.

  2. Avatar photo Jonny says:

    I am genuinely surprised that an investor looked at the numbers and kept pumping money into this operation. They’re the only altnet who managed to add no customers for a whole year.

    1. Avatar photo insider says:

      and you know this how?

    2. Mark-Jackson Mark Jackson says:

      I seriously doubt they didn’t add any customers for a whole year. The network build may have stagnated, but that’s very different.

      The company’s accounts also reported that it had ended March 2022 with a total of 340,000 premises passed and 8,664 connected customers, which is up from 180,000 premises and 3,477 customers in the year before (roughly double). We await the next accounts.

    3. Avatar photo Jonny says:

      Should have said “added no additional premises” rather than customers. Info from https://www.ispreview.co.uk/index.php/2023/02/a-quick-look-at-the-changing-growth-of-uk-full-fibre-altnets.html

      They’ve not updated that 400k figure for a while. Anecdotally we have had customers with their business service with outages taking a week to fix, we’ve seen areas dug up and ducted and left for a year without any attempt to complete the build.

    4. Avatar photo John says:

      Only 8k customers out of 340k is an incredibly awful takeup of 2%. The lowest I’ve seen even if they fudged and doubled the live number it would only be takeup of 4%

  3. Avatar photo Real Insider says:

    jonny, you seem to mix up they and we, maybe you are an insider or exinsider? either way there are many things that have happened, and numbers have increased but the land grab and rush for RFS is not a thing anymore. Plus making good use of the pounds is more important. anyway, there will always be people who know more, but actually dont.

    1. Avatar photo Jonny says:

      Not an insider, and don’t claim to have special knowledge. The “we” in my post refers to the company I work for that has London clients based in the G.network footprint, some of whom take service from them. My view on them based on the interactions I have had is not a positive one, others might have had better luck.

  4. Avatar photo Alt net Ned says:

    Only surprise is that they haven’t replaced the CEO (yet)…. continual move to get the entire leadership team as ex OR / BT.

    Build completely stopped and only selling to way leaved buildings apparently which must have reduced the amount of serviceable properties but would have reduced the cost to connect id have thought.

    They are in serious difficulty, looks like USS are trying to ride it out

    1. Avatar photo Real Insider says:

      now that is a fair and valid point….ceo@g.networkopenreach

  5. Avatar photo Matt R says:

    Very surprised to see this. All I’ve seen from G Network are stagnated roll outs, as of late. A friend had G Network roll out fibre in their road well over a year ago now and nothing has gone live. To make matters worse, they ripped up the same stretch of road that had just been laid the week before for water works.

  6. Avatar photo SK says:

    CFO leaving isnt a surprise, he failed to bring in external funding. The CEO has been there over 12 months and has looked out of his depth (removing the entire C Suite quickly was a bad decision), expect him to exit fairly soon, he’s spent millions and achieved nothing.

    Apparently another 180 redundancies announced yesterday, so thats 380 in a couple of months, with no doubt more to come, the business is in a bad states.

  7. Avatar photo Sarah Marshall says:

    This is nothing more than the current CEO, who is utterly useless, trying to salvage his reputation/boost his ego. They’ve failed to acquire the additional funding they’ve been seeking from banks for over a year so USS, as they have with Thames Water,have had to bail them out.

    Since the new CEO joined the business has not delivered on a single business critical KPI and subsequently is in financial turmoil hence is now in the process of making c50% of its workforce redundant.

    They continue to recruit C-Level roles exclusively from BT/OR who clearly don’t get the Alt Net or PE market/environment.

    1. Avatar photo Real Insider says:

      you know your news… its all true and an utter shame….

  8. Avatar photo Big Dave says:

    So for USS it’s a case of risk another 150m or kiss goodbye to a billion then.

  9. Avatar photo The Joker says:

    What an about sh&t show…. USD piling in more money in a desperate bid to save the $1bn already invested.

    Current CEO won’t be long until he does…. Probably when the lights get turned out for all

    1. Avatar photo AvidReader says:

      USS you mean not USD?

  10. Avatar photo KnowMoreThanMost says:

    oh dear… thought Simon K, as CFO, and CEO were joined at the hip as they cut through the organisation…. exiting talent and declining connection. numbers. Expect their book out soon…… “how to destroy a company with 12 months” and spunk more of Uncle Bob Hewsons money from USS (they must be worried)

  11. Avatar photo Sid Fibre says:

    Tick tock tick tock, one down one to go, USS need to bring the experiment and chapter to a close and get someone commercial in to lead the business, and when I say lead I mean proper leadership not the crap that’s been served up in the last 12 months.

    GN have a serious piece of real estate, ducted fibre in the centre of London and OR won’t touch it (at the moment), but they need to monetise it before Tim from Vorboss takes the SME opportunity off their dinner plate, and the GN CEO right now does not have the ability to do that.

    tick tock tick tock

  12. Avatar photo Know it says:

    G-Network have something that no other Alt-net have a network in the ground.
    You all seem to be missing that fact, it’s like the old cable days when they were broke too.
    Look at it now, if GN don’t generate the add-nets someone will buy them as where their network runs is a goldmine.

Comments are closed

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