VMO2 Confuse Nexfibre’s UK Build Target as More Homes Get FTTP Broadband UPDATE
Virgin Media (O2) has revealed that their joint expansion of 2Gbps speed FTTP broadband (nexfibre and FTTP upgrades) have now reached 94,867 new homes in Belfast (Northern Ireland), 68,631 in Birmingham, 56,652 in Leeds, 65,121 in Coventry and 63,870 in Stoke-on-Trent. But interestingly, the provider still suggests nexfibre will reach their target of covering 5 million homes across the UK by 2026.
“Our latest rollout … is part of our goal to deliver high speed full-fibre (FTTP) connections to 5 million homes across the UK by 2026. We’ve already reached a total of two million premises passed and ready for service, and we’re continuously expanding and improving our network to give you the latest and greatest broadband technology,” said a string of recent VMO2 build progress updates.
The updates are interesting because they come in the wake of a significant slowdown in nexfibre’s roll-out pace (here and here), which was triggered after co-parent Telefonica launched a Strategic Review of their global business. The decision resulted in nexfibre scaling back their deployment – now aiming to reach just 2.5m premises in 2025 (down from c.3m) – and Virgin Media scrapping the semi-separate NetCo plans for opening up their existing consumer broadband network to wholesale (here).
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Suffice to say that this has triggered some uncertainty over nexfibre’s future build targets, since reaching the original goal of 5m by the end of 2026 would now be very difficult. But the latest updates suggest that, despite all these changes, VMO2 still expects nexfibre to reach their 5 million premises target on time.
The most likely solution to bridging this gap in expected deliverability is through consolidation of a rival network or two, which is something that nexfibre and VMO2’s leadership has recently been talking-up. But we’ve yet to hear of any new agreements being made on this front and that will need to happen soon in order to meet the target, not least since network integration work often takes a very long time (nexfibre understands this after their lengthy integration of Upp – here).
So the fact we’re still seeing that 5m target being stated as boldly as before, given all the recent events, does perhaps indicate that they must have some reasonable expectation of an M&A (merger and acquisitions) agreement or two being signed in the near future. Either that or somebody in their PR wing hasn’t been given the memo.
UPDATE 3:27pm
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A spokesperson for VMO2 has informed ISPreview that the “5 million homes across the UK by 2026” figure they stated, across several articles, over the past few days was “published in error“. So for now, the only nexfibre build target remains the reduced 2.5 million figure for 2025 and there is currently no further guidance being issued beyond that.
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook, BlueSky, Threads.net and Linkedin.
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Funny enough Think Broadband now lists VMO2’s build in Banbury as Nexfibre XGS-PON although I am pretty sure it’s VMO2 RFOG & all the toby boxes are VMO2 branded. There contractors (ESG ?) were surveying our estate about a year ago but since then absolutely nothing.
Nexfibre XGS-PON here with a VM toby box.
The branding on the toby boxes is often VMO2 – Banbury is XGS-PON and have just double checked to make sure had not gone mad previously
Even the old Virgin Media Omni boxes are sometimes used still, when converting to XGS-PON. Have seen this myself.
When stating a temporal condition in the form “… by 2026” I would interpret that to mean the target was no later than CoB on 31st December 2025.
Nexfibre could not even achieve this through M&A, given the timescales.
The only way they could achieve that target is through a transfer of network assets from the VM02 JV.
Generally in this market, “by 2026” almost always means “end of”, which may be either the end of the calendar or financial year 2026. I do agree that it’s always been a bit of a subjective one to use “by”, but that’s how these things always seem to be painted in PR land.
@Mark Jackson:
Yes, there are certainly some examples of the above usage, such as seems to be the case here, but fortunately, it does not appear to be universal.
That still leaves a question around what to make of that line in the press release.
Perhaps their PR have just not updated their tag lines to reflect the current realities, but that would seem unlikely.
Even with the liberal definition of “by 2026” it would still be a push to complete an acquisition by the end of 2026. CityFibre would seem the most likely and obvious candidate, but neither of the LibertyGlobal/Telefonica JVs seems to have marshalled sufficient resources yet for such an acquisition, while CityFibre’s owners might have difficulty untangling the various financial arrangements if one or more decided to sell out.
They could possibly achieve the target by acquiring one or two smaller networks alongside a restart of their own builds, but that would that would probably foul up the Nexfibre systems architecture.
A transfer of the Project Mustang between the two JVs might provide focus, resources and numbers, but it would also be putting all the eggs in one basket.
The biggest obstacle of all would seem to be that Telefonica is waiting on a decision from the EU Commission on whether the latter will allow a consolidation with the EU markets by shifting from four to three guidelines for the number of main players in each market. Once a decision has been made on that, Telefonica will know which options it will want to pursue.
Or maybe the PR team haven’t updated the target volumes boiler plate?
Spot on
VM can’t be bothered to upgrade XGS-PON in Telford.
There is nothing special about Telford to make them rush to do it early. It makes sense not to rush to upgrade Telford as there are no altnets overbuilding the cable.
Right now the nearest contractors to you working on the project are in Birmingham. The only other big group of contractors on projects nearby are in Shrewsbury doing Nexfibre work. Shrewsbury has quite a lot of Full Fibre Ltd build, Birmingham has Brsk and CityFibre at volume.
Telford has a bit of Exascale in Hortonwood, Trench Lock and Hadley. Tiny overlap with cable.
@Polish Poler: Now that’s what i call a comprehensive comment/answer. You must have a great source for all that info. 🙂
I wonder when the “technology update” will include IPv6…
So ignore the map that had chunks taken out of it. It’s back in business!
Nex fibre having been building in Girvan since febuary 2024 stillnot finished oreven active but build map shows as current mmmmmmmmmmmmmm!!!
VM are stuffed until EU decide fate on Telefonica, their partner. Until then, it’s no major strategy or new expenditure for roll out.
They need to up the speed to match you fibre 8gig
Unfortunately, for me, living down in Dover, at the Ct 162 rt postcode, I cannot get fibre F. TTP.
And I have contacted all the providers and not one of them can tell me when or even if I will, in the future, be able to get full fibre. At my postcode. They can’t even tell me if planning. Or planning will be starting this year. Anytime in venue near future
It is depressing for me and rather annoying. But my postcode always gets treated like this when it comes to new internet technologies at the moment if I go through a open reach. Based connection, the best I can get is fifteen megabytes.The next
I have been on VM XGS-PON for 8 months now in Manchester. They still have not enabled symmetrical speeds or modem mode on the hub 5x.
I have at minimum a drop out one a month, customer says its “normal”
Last week I replaced the 5x with a WAS-110, time will tell if I get any more drop outs.
I will be going back to an Openreach fttp provider once this contract is over