CityFibre Sells Entanet to Entrepreneur Tom O'Hagan in Strategic Restructure

CityFibre has agreed to sell Entanet, its wholesale broadband division, to entrepreneur Tom O'Hagan in a deal that marks a fundamental shift in the altnet's business strategy.

The transaction strips away CityFibre's off-net business operations, allowing the network builder to focus entirely on services delivered across its own rapidly expanding fibre infrastructure. Entanet will continue as an independent wholesale provider under O'Hagan's ownership, maintaining its strategic partnership with CityFibre whilst expanding relationships with other network operators.

Financial terms of the sale were not disclosed.

Strategic Pivot to On-Net Services

CityFibre's decision to offload Entanet reflects a deliberate move to simplify its operating model. The company has built Britain's third-largest digital infrastructure network, with fibre connections now passing 8.5 million homes and businesses across the country.

"This sale allows us to sharpen our focus on what we do best – building and operating world-class fibre infrastructure," said Greg Mesch, Chief Executive of CityFibre. "By concentrating exclusively on our own network footprint, we can deliver better value to our Internet Service Provider partners and ultimately to end consumers."

The restructure eliminates the complexity of managing services across multiple networks. CityFibre will now dedicate all resources to selling wholesale capacity on infrastructure it owns and controls directly.

Entanet has operated as a wholesale broadband provider for Internet Service Providers, offering connectivity solutions that extend beyond CityFibre's footprint through partnerships with other network operators.

O'Hagan's Track Record

Tom O'Hagan brings significant telecommunications sector experience to the acquisition. The entrepreneur previously served as Chief Executive of Daisy Group, where he led the telecommunications company through a period of substantial growth before its £1.7 billion sale to American private equity firm Centerbridge Partners in 2020.

"Entanet is a respected name in the wholesale broadband market with strong customer relationships and excellent technical capabilities," O'Hagan said. "As an independent business, we'll have the freedom to work with the full range of network providers whilst maintaining our valued partnership with CityFibre."

The sale is expected to complete in the coming weeks, subject to standard regulatory approvals.

Implications for ISP Market

The transaction creates a more neutral wholesale player in Britain's competitive broadband landscape. As an independent entity, Entanet will be free to aggregate services from CityFibre's rivals, including Openreach, Virgin Media O2, and smaller alternative network providers.

Industry analysts suggest the move could benefit smaller ISPs by providing access to a wider range of network options through a single wholesale partner.

"This gives Entanet the agility to respond to market demands without being tied to a single infrastructure owner," said Sarah Mitchell, a telecommunications analyst at Broadband Solutions Group. "ISPs want flexibility to choose the best network for each customer location, and an independent Entanet can deliver that."

For CityFibre's ISP partners, the change means dealing with a dedicated network operator focused purely on its own infrastructure. The company supplies wholesale services to more than 200 Internet Service Providers, including major brands like TalkTalk, Vodafone, and Zen Internet.

Network Expansion Continues

CityFibre's network rollout shows no signs of slowing despite the strategic repositioning. The company is deploying full-fibre infrastructure across 285 cities, towns, and villages nationwide, with construction teams active in locations from Aberdeen to Brighton.

The altnet passed its 8 millionth premise in November and aims to reach at least 8.5 million properties by the end of its current build programme. Investment in the network has topped £4.5 billion since the company accelerated its expansion in 2018.

"Our network is the foundation of everything we do," Mesch added. "Every pound we invest, every engineer we deploy, and every partnership we forge will now support growth on our own infrastructure."

The company employs approximately 3,000 staff directly and supports thousands more jobs through its construction partners.

Entanet's Independent Future

Under O'Hagan's ownership, Entanet will retain its headquarters and existing workforce. The business serves hundreds of ISPs across Britain, providing wholesale connectivity, voice services, and technical support.

"Our customers can expect continuity in service quality and our commitment to their success," O'Hagan said. "We're not changing what works – we're enhancing our ability to serve the market by operating as a truly independent wholesale provider."

Entanet will continue accessing CityFibre's network under a long-term wholesale agreement, whilst simultaneously developing relationships with other infrastructure operators to broaden its product portfolio.

The sale represents one of the telecommunications sector's most significant ownership transitions this year, reshaping competitive dynamics in Britain's wholesale broadband market. Both companies expect the change to drive innovation and improve service delivery across the ISP community.

CityFibre's focus on network infrastructure mirrors strategies employed by other major altnet operators, who increasingly concentrate resources on building and maintaining physical networks rather than diversifying into service provision. The approach allows specialisation and potentially higher returns on infrastructure investment as demand for full-fibre connectivity continues climbing across residential and business sectors nationwide.