Rats' Appetite for Fiber: A Hindrance for G.Network's Rescue Bid
The potential rescue of G.Network, a struggling London broadband provider, has been thwarted due to a peculiar issue: rats' fondness for fiber-optic cables. Community Fibre, a rival network builder, had been considering an acquisition from administrators, who were appointed when G.Network's £300 million debt and 25,000 subscribers proved too much to bear.
However, Community Fibre's CEO, Graeme Oxby, revealed that the rescue bid was called off, partly due to the costly repairs needed for rodent damage. Rats, it seems, have a taste for fiber, and this has become a significant hurdle.
Oxby explained, "Rodents love ducts and fiber, which they find delicious." The prospect of extensive repairs to fix the damage has deterred Community Fibre from rescuing G.Network. He added, "We weren't particularly interested because we believe there are structural issues and it would be expensive to fix."
This isn't the first time rats have caused broadband issues. Two years ago, Openreach blamed nesting rats for network problems in Tring, where engineers found rats had chewed through strong ducting, outer casing, and multiple cables, typically requiring a drill to penetrate. Similarly, residents in Doncaster faced broadband disruptions last month, attributed to 'rodent damage' by local MP and Energy Secretary Ed Miliband.
Broadband companies often seal cable openings to prevent rat access and re-route cables to avoid nests. G.Network's unique approach of laying cables in busy London roads instead of under pavements has led to costly and disruptive repairs. Industry sources note that this requires digging up roads, causing closures and complaints from residents in areas like Islington.
G.Network's troubles began when it was acquired by FitzWalter Capital, a 'vulture fund' specializing in distressed assets. The company is now set to be sold, with its fiber broadband network and customer base up for grabs. G.Network joins a growing list of 'alt-net' broadband firms facing strain from rising interest costs and low subscriber uptake.
Analysts predict a wave of mergers and collapses in the alt-net sector as startups struggle with debt. Additionally, rural broadband firm Gigaclear is on the brink of being taken over by lenders, including Natwest and the National Wealth Fund. Despite the challenges, Oxby remains optimistic, believing some alt-nets can survive and challenge BT's dominance.
He stated, "There will be distressed consolidations, but we don't see consolidation as the only solution. We aim to be successful competitors to the incumbent, bringing competition to the market." Community Fibre's success, with a growing customer base and revenue, showcases its potential to thrive in the broadband industry.
