{"id":22143,"date":"2020-05-01T19:25:34","date_gmt":"2020-05-01T18:25:34","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=22143"},"modified":"2020-05-04T10:28:50","modified_gmt":"2020-05-04T09:28:50","slug":"o2-uk-and-broadband-isp-virgin-media-reportedly-in-merger-talks","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/05\/o2-uk-and-broadband-isp-virgin-media-reportedly-in-merger-talks.html","title":{"rendered":"O2 UK and Broadband ISP Virgin Media Reportedly in Merger Talks UPDATE"},"content":{"rendered":"

The owners of fixed cable TV and broadband ISP Virgin Media<\/a> UK (Liberty Global) are reportedly discussing the possibility of a merger with the owners of mobile operator O2<\/a> (Telefonica). Assuming the two sides are able to reach an agreement then it’s claimed that a deal “could be announced as soon as next week<\/em>.”<\/p>\n

According to Bloomberg<\/a>‘s sources, no final decisions have been made and the talks could still fall apart or be delayed. At this point regular readers of ISPreview.co.uk will recall that, over the years, Virgin Media<\/a> has been linked to more than a few potential mergers or asset swaps (Vodafone<\/a> in particular has long been a big talking point and so has O2<\/a> – here<\/a>), although so far none have ever come to fruition.<\/p>\n

In theory it makes perfect sense for Virgin Media<\/a> to combine their fixed broadband business with a dedicated mobile operator, which would enable them to more directly target arch rival BT<\/a> in the retail space. BT<\/a> has invested heavily to create a new all IP converged network, where mobile and fixed line connectivity could become almost seamless, although not all consumers are keen on such solutions. Likewise Virgin’s fixed lines could help to fuel data capacity for 5G<\/a> mobile etc.<\/p>\n

On top of that if Virgin Media does proceed with their often mentioned proposal to separate the fibre network from their retail ISP business (e.g. the fibre network would go wholesale under the ‘Liberty Networks<\/strong>‘ company and expand into new areas via FTTP<\/a>) then having a full mobile side would help to boost their consumer proposition.<\/p>\n

However, one potential problem could be the fact that Virgin Media has already signed a 5-year contract with Vodafone<\/a>, which will see the latter taking over their Mobile Virtual Network Operator<\/strong> (MVNO) platform from EE<\/a> (BT<\/a>). Under that deal Virgin Mobile will start to transition on to Vodafone<\/a>’s network from the end of 2021 (here<\/a>).<\/p>\n

Suffice to say that if any major changes are planned to the Vodafone arrangement then they’ll have to happen soon in order to avoid bigger complications further down the line. Preparing for a switch of mobile platform is a very complicated process, which requires plenty of preparation so as to avoid upsetting existing customers (TalkTalk<\/a> has some experience of this and eventually got out of the MVNO game altogether).<\/p>\n

Telefonica has of course been looking to float or sell O2<\/a> UK for some years now, although in the past year they appeared to have given up on that course and were instead focusing upon a plan to improve their UK network. At this point readers may recall that a proposed merger between O2 and Three UK<\/a> failed following competition concerns by the EU and Ofcom<\/a>, although a deal between Virgin Media and O2 seems unlikely to run into any big problems (two different types of network).<\/p>\n

UPDATE 2nd May 2020<\/strong><\/p>\n

One other thought we had concerns Sky Broadband<\/a>, specifically their Sky Mobile<\/a> division as that uses an O2 based MVNO platform. More than a few reports have suggested that Sky could become an ISP customer of Liberty Networks in the future, assuming that project proceeds.<\/p>\n

In any case the above deal could mean Sky also taking mobile connectivity from direct rival Virgin Media, which might prompt them to switch supplier to Three UK<\/a> or Vodafone.<\/p>\n

UPDATE 4th May 2020<\/strong><\/p>\n

Now it’s official (here<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"

The owners of fixed cable TV and broadband ISP Virgin Media UK (Liberty Global) are reportedly discussing the possibility of a merger with the owners of mobile operator O2 (Telefonica). Assuming the two sides are able to reach an agreement then it’s claimed that a deal “could be announced as soon as next week.”<\/p>\n","protected":false},"author":1,"featured_media":22144,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,32,475],"class_list":["post-22143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-o2","tag-virgin-media"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nO2 UK and Broadband ISP Virgin Media Reportedly in Merger Talks UPDATE - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The owners of fixed cable TV and broadband ISP Virgin Media UK (Liberty Global) are reportedly discussing the possibility of a merger with the owners of\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/05\/o2-uk-and-broadband-isp-virgin-media-reportedly-in-merger-talks.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"O2 UK and Broadband ISP Virgin Media Reportedly in Merger Talks UPDATE - 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