Virgin Media O2 to open fixed network to wholesale

Virgin Media O2, alongside shareholders Liberty Global and Telefónica, have initiated plans to establish a wholesale arm, creating ‘a clear choice at scale’ for providers as an alternative to Openreach.

The new entity (NetCo) will be a fully consolidated subsidiary of VMO2, comprising the operator’s cable and fibre network assets covering 16.2m premises across the UK.

It will underpin VMO2’s continued upgrade programme which sees its existing cable network overlayed with full fibre.

The company also states that NetCo will provide new financing optionality and a platform for altnet consolidation opportunities.

CEO Lutz Schüler said: “This is a logical evolution of our fibre strategy that creates a clear, focused and scaled network entity which underpins our shift to a fully fibre network.

“While nothing changes today work is well underway and you’ll hear more from us later in the year.” 

VMO2’s mobile assets will not form part of the NetCo, and nexfibre will continue to operate separately focusing on fibre network expansion into greenfield areas. 

Once all planned fibre build is completed, the separate NetCo and nexfibre networks will reach a combined total of up to 23 million homes.

Collectively, Virgin Media O2 and nexfibre have a full fibre footprint of more than four million premises today.