Virgin Media O2 to Create Fixed Network Company NetCo for UK Fibre Expansion

UK’s Virgin Media O2 (VMO2), in partnership with its shareholders Liberty Global and Telefonica, has announced plans to create a separate national fixed network company (NetCo). The company said this move is aimed at driving full fibre adoption, diversifying financing options, and facilitating potential consolidation opportunities among alternative network providers.

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Also Read: Virgin Media O2 Achieves Milestone in UK’s Rural Connectivity Program

NetCo: Fibre Unit

The establishment of NetCo positions Virgin Media O2 as a major alternative to BT’s Openreach, offering wholesale alternatives in the UK market, said the official release.

The newly formed NetCo, a fully consolidated subsidiary of Virgin Media O2, will encompass the operator’s cable and fibre network assets, covering approximately 16.2 million premises across the UK. These assets will be upgraded to full-fibre in the coming years, aligning with Virgin Media O2’s ongoing network strategy.

Reportedly, NetCo will focus on completing the ongoing fibre upgrade program, enhancing the existing cable network with full fibre capabilities, and exploring financing options while pursuing wholesale opportunities. NetCo will connect Virgin Media O2’s entire fixed customer base through a wholesale agreement. This move ensures revenue generation and cash flow from day one of NetCo’s operation, said VMO2.

Also Read: Virgin Media O2 Boosts Rural UK Connectivity With 5G, Upgrades 4G

Collaboration and Development

Importantly, Virgin Media O2’s mobile assets will remain separate from NetCo, while the independent fibre joint venture nexfibre, between Liberty Global, Telefonica, and Infravia, will continue its operations, focusing on fibre network expansion into greenfield areas.