Virgin Media O2 reportedly nears deal to use BT’s broadband network
BTI•Virgin Media O2 is reportedly nearing a deal to use BT’s Openreach fibre network to serve new customers in areas its network does not cover. It is also reportedly pausing cable-network upgrades as part of a cost-cutting programme.
1. Proposed network access
Virgin Media O2 is reportedly nearing a deal to use BT’s Openreach network to serve new customers in areas not covered by its existing network. The company is also reportedly pausing efforts to upgrade its cable network to fibre as part of a broader cost-cutting programme.
2. Fibre market context
The reported talks follow Virgin Media O2’s owners saying they would challenge the competition regulator’s opposition to their £2 billion acquisition of fibre network operator Netomnia. Nexfibre, a joint venture involving Virgin Media O2’s co-owners Liberty Global and Telefonica and infrastructure investor InfraVia, agreed in February to buy Netomnia’s parent, Substancial Group; the companies said the deal would unlock about £3.5 billion of UK fibre-market investment.
