Karen Egan, at Enders Analysis, said: “There are certainly a lot of alt-nets out there that are really struggling financially and hoping that they will be bought. G Network is a reminder that there won’t be a buyer for all of them.”
But no good deed goes unpunished and competition for territory among Openreach, Virgin Media 02 and the altnets has been intense and costly. “I cannot tell you how crazy a market it is out there,” says Karen Egan, head of telecoms at Enders Analysis. The altnets suffered £1.5bn net losses in 2024, while Openreach lost a net 828,000 customers in that year.
The UK has a related challenge. The saying goes that “if you build it, they will come” but not enough have. Only 38 per cent of homes and businesses that could now connect to full fibre through Openreach have done so, while the altnets achieved only 15 per cent take-up by the end of 2024, according to Enders.
Karen Egan, head of telecoms at Enders Analysis, said FitzWalter’s acquisition of G.Network was “difficult to comprehend as a strategic sale given the buyer’s reputation as a distressed debt specialist” and “the likely difficulty they would have in selling the company on to someone else”.
“FitzWalter Capital are likely to be able to at least keep the lights on during an insolvency process so that customers are not put at risk of losing service,” she added.
Claire Holubowskyj, at research service Enders Analysis, said the fact that clients were looking to other firms meant WPP needed to 'show some results' in 2026 if it wanted to reverse the decline.
'They are getting better at communicating that things are changing, but the proof will be in the pudding when we see how the revenues are performing in six or 12 months time.'
She added that a break-up of the business was still a possibility if Rose's turnaround failed to achieve results.
'We can't rule out a break-up. It may not be a full fragmentation but they haven't recovered enough to remove that as a prospect,' Holubowskyj said.
The deal has been labelled as the first move in a long-expected financial crunch in the UK “altnet” fibre sector, which had more than £9bn of net debt at the end of 2025, according to Enders.
Karen Egan, head of telecoms at Enders Analysis, said that despite “very challenging economics, the altnet sector is being kept alive by ongoing trickle funding from very patient investors”.
She added: “This deal is a reminder that even patient investors don’t remain patient indefinitely, and that there is likely to be quite a bitter financial pill to be swallowed when the music stops.”
The service will see Revolut pay US mobile startup Gigs to use Vodafone’s network, joining other so-called mobile virtual network operators that make up nearly a fifth of the UK mobile market, according to Enders Analysis.
The shift from an explicitly anti-advertisement approach to take advantage of ad revenue reflects a broader trend in media, says Abi Watson, head of publishing at Enders Analysis. “Netflix once defined itself by its refusal to take ads, and now advertising is one of its core strategic pillars.”
Watson believes there is a defensive element to Substack’s new scheme. “Expanding the commercial toolkit helps Substack retain its biggest creators.
“Subscriptions let you monetise only the most committed part of the funnel. Advertising opens up the rest – the large cohort of registered users with low propensity to pay, plus the passing traffic that still has value in aggregate.”
“CNN will struggle against Fox News’ model with its $39.99-per-month ESPN Fox One Bundle, driven by sports. They need to integrate a package ,” believes François Godard, Senior Analyst at Enders Analysis. The key question remains how CNN can integrate a package into the existing offerings of Disney-Hulu-HBO Max and ESPN Fox One. But beyond that, what will happen to CNN if Warner continues to separate its linear channels from its more profitable streaming operations? Not to mention the uncertainties surrounding its strategic priorities if Paramount succeeds in its takeover bid.
DMG Media, the owner of brands including Daily Mail Online and Metro, has complained about AI overviews leading to a drop in referrals to its websites of 89 per cent. The publisher told the Competition and Markets Authority that Google’s summaries were “carefully constructed” to ensure “the user has no reason to read any further” than the search page. Meanwhile, Enders Analysis, the research group, has warned publishers that “search traffic is no longer a given” in the age of artificial intelligence.
