{"id":24241,"date":"2020-10-05T12:22:14","date_gmt":"2020-10-05T11:22:14","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=24241"},"modified":"2020-10-05T12:27:05","modified_gmt":"2020-10-05T11:27:05","slug":"virgin-media-uk-target-1gb-broadband-for-8-million-more-homes","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/10\/virgin-media-uk-target-1gb-broadband-for-8-million-more-homes.html","title":{"rendered":"Virgin Media UK Target 1Gb Broadband for 8 Million More Homes"},"content":{"rendered":"

The new joint venture between ISP Virgin Media<\/a> and mobile operator O2<\/a> (here<\/a>) appears to have today resulted in an ambition to expand their gigabit-capable broadband network to reach an extra 1 million premises “within 12 months of the merger closing<\/em>” (total of 16 million) and to then connect a “further 7 million homes<\/em>.”<\/p>\n

The statement came as part of a jobs announcement, which followed a related opinion piece penned by Mike Fries<\/strong> (CEO of VM’s parent, Liberty Global) and Jos\u00e9 Mar\u00eda \u00c1lvarez-Pallete<\/strong> (CEO of O2<\/a>’s parent, Telefonica). As part of that the pair said they were “determined<\/em>” to build a “new national connectivity champion<\/em>” to serve the UK.<\/p>\n

Several key measures were mentioned to support this, including their joint plan to invest as much as \u00a310bn<\/strong> to improve the UK’s broadband network and services over the next 5 years (by 2025\/26). However, aside from extending 5G<\/a> mobile coverage to more than 100 UK towns and cities by the end of 2021, the duo also talked about their fixed line network.<\/p>\n

Crucially, this marks the first time that Liberty Global has spoken so solidly about going beyond their existing Project Lightning<\/strong> build and now they’ve attached a clear ambition to it (outside of speculative discussions with investors).<\/p>\n

Liberty Global and Telefonica Statement:<\/strong><\/p>\n

“Additionally, the companies will have added 1m premises to the 15 million homes and countless businesses that are already gigabit ready for broadband, within 12 months of the merger closing. The merged company also has the ambition to accelerate investments and connect a further 7m homes to gigabit broadband in the coming years, well ahead of the Government\u2019s current broadband ambition.”<\/p><\/blockquote>\n

At this point it’s worth highlighting that the reference to 15 million premises reflects their Hybrid Fibre Coax<\/strong> (HFC) and Fibre-to-the-Premises<\/strong> (FTTP<\/a>) based fixed broadband network, which at the last update in August 2020 had already covered 15,072,600 UK homes (here<\/a>).<\/p>\n

Long-time readers will recall that the original goal for Virgin Media<\/a>’s \u00a33bn Project Lightning network expansion was actually to reach 17 million premises (c.60%+ UK coverage) by the end of 2020 (i.e. 4 million extra premises), which was then briefly brought forward to the end of 2019, before being swept under the carpet after they were found to have overstated their progress (here<\/a>).<\/p>\n

NOTE:<\/strong> By the end of 2021 all of their fixed line network will be 1Gbps+ capable via the DOCSIS<\/a> 3.1 upgrade.<\/div>\n

In other words, while it’s good to see Virgin Media<\/a> commit to adding an extra 1 million premises, this will still result in them being around a million shy of their original goal. As such the most interesting aspect of their latest opinion piece is the talk of them accelerating to connect “a further<\/em>” 7 million premises (we’re assuming from the context that this is for fixed lines and NOT including 5G<\/a>, but it’s not 100% clear).<\/p>\n

As we reported last year (here<\/a>), there has previously been a lot of top-level talk about the new Liberty Networks<\/strong><\/a> (formerly Liberty Fibre) company in the UK. The prior expectation was that this may become a vehicle for deploying a new full fibre network out into rural areas, which would do wholesale for ISPs (Virgin Media, Sky Broadband<\/a> etc.) and also be able to bid on the Government’s \u00a35bn gigabit broadband programme.<\/p>\n

The operator could also conceivably split their existing HFC and FTTP<\/a> broadband network off completely (or only the FTTP<\/a> side) into the new company and, again, sell access to rival ISPs, albeit with Virgin Media being given special access as an anchor tenant. But all this talk suddenly when quiet after the merger with O2<\/a> was announced, until now. But we’ll have to wait and see what form this will take.<\/p>\n

Jose Maria Alvarez-Pallete and Mike Fries said:<\/strong><\/p>\n

“We want to create a national connectivity champion for the U.K. which can support the country in its digital-led recovery, by investing in the infrastructure the country needs and promoting jobs and apprenticeships to improve the digital skills base. We want to create the leading fixed and mobile competitor in the market, supporting consumers, businesses and society, and this announcement demonstrates our confidence in the long-term potential of the UK\u2019s digital economy.”<\/p><\/blockquote>\n

As for the jobs’ announcement itself, the merged operator said 4,000 jobs and up to 1,000 apprenticeships will be created by their plans.<\/p>\n","protected":false},"excerpt":{"rendered":"

The new joint venture between ISP Virgin Media and mobile operator O2 (here) appears to have today resulted in an ambition to expand their gigabit-capable broadband network to reach an extra 1 million premises “within 12 months of the merger closing” (total of 16 million) and to then connect a “further 7 million homes.”<\/p>\n","protected":false},"author":1,"featured_media":24242,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[472,419,56,475],"class_list":["post-24241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-business","tag-docsis3-1","tag-fttp","tag-virgin-media"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nVirgin Media UK Target 1Gb Broadband for 8 Million More Homes - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The new joint venture between ISP Virgin Media and mobile operator O2 (here) appears to have today resulted in an ambition to expand their gigabit-capable\" \/>\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\/10\/virgin-media-uk-target-1gb-broadband-for-8-million-more-homes.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Virgin Media UK Target 1Gb Broadband for 8 Million More Homes - 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