{"id":29933,"date":"2022-01-30T21:42:58","date_gmt":"2022-01-30T21:42:58","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=29933"},"modified":"2022-01-30T21:42:58","modified_gmt":"2022-01-30T21:42:58","slug":"virgin-media-o2-uk-reportedly-seeks-funding-for-fttp-rollout","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2022\/01\/virgin-media-o2-uk-reportedly-seeks-funding-for-fttp-rollout.html","title":{"rendered":"Virgin Media O2 UK Reportedly Seeks Funding for FTTP Rollout"},"content":{"rendered":"

A number of reports have today claimed that Virgin Media<\/a> (O2<\/a>), alongside merger parents Telefonica and Liberty Global, will this week begin deeper discussions with the hope of securing investment for a new Joint Venture (JV) to fuel their long-held ambition to cover millions of additional UK homes with full fibre broadband.<\/p>\n

At present Virgin Media<\/a>’s fixed broadband network already covers around 15.5 million premises, although most of that (14.3 million) exists on their older Hybrid Fibre Coax<\/strong> (HFC) infrastructure, while the rest is via their latest Fibre-to-the-Premises<\/strong> (FTTP<\/a>) technology. All of this is capable of multi-gigabit download speeds, although upstream remains a weak point where the use of DOCSIS<\/a> is concerned.<\/p>\n

The operator has also announced that it intends to upgrade all of that HFC to symmetric speed capable XGS-PON<\/strong> based FTTP<\/a> by the end of 2028 (here<\/a>), with trials already taking place at 50,000 homes in Stoke<\/strong>, Salisbury<\/strong> and Wakefield<\/strong> (here<\/a>).<\/p>\n

However, VMO2 has repeatedly also spoken of a future “ambition<\/em>” to expand their latest FTTP<\/a> network to reach an extra 7 million homes<\/strong> (here<\/a> and here<\/a>) – bringing them close to Openreach<\/a>’s planned reach, which they previously said would be funded as part of a \u00a310bn<\/strong> capex investment in UK fibre and 5G<\/a> infrastructure over the next 4-5 years. But we haven’t had a solid update on that since the merger completed last spring.<\/p>\n

According to several reports this evening (Sky News<\/a>, FT<\/a>), VMO2’s primary shareholders – Liberty Global and Telefonica – have opened discussions with investors to help raise “hundreds of millions of pounds<\/em>” to support their FTTP rollout (this is far too low for it to equate to the aforementioned expansion plan) via a new “open access<\/em>” style joint venture. Virgin Media<\/a> would be an anchor tenant ISP on such a network (we suspect Sky Broadband<\/a> may join them), which would become a separate company from their retail side.<\/p>\n

None of this will come as much of a surprise to ISPreview.co.uk’s readers because we’ve been reporting on exactly this aspiration since 2019 (here<\/a>). Virgin Media has also made no secret, both before and after the O2<\/a> merger, of its desire to turn itself into a wholesale operator like Openreach<\/a>. But precisely what approach they’d take (i.e. only wholesale the FTTP part or HFC too), and when they’ll finally flick the switch, is still unclear.<\/p>\n

As for the question of who might be willing to make an investment in such a venture? Back in October 2021 it was alleged that VMO2 were in discussions with Sky (Comcast) over a related wholesale and investment deal (here<\/a>). Sky, which is the UK’s second-largest broadband ISP – albeit one without their own physical infrastructure (they gave up the idea of building FTTP some years back), have long been linked to such ambitions.<\/p>\n

We’ve seen plenty of signs that Virgin Media has been ready – practically speaking – to go wholesale for a while, but securing the necessary investment and agreements from potential partners can be complex. For example, Sky Broadband<\/a> might well seek some degree of exclusivity, which is understandable. But that does make it harder to secure support from other ISPs (CityFibre<\/a> had a similar issue, until recently). Otherwise, the wait for an announcement continues.<\/p>\n","protected":false},"excerpt":{"rendered":"

A number of reports have today claimed that Virgin Media (O2), alongside merger parents Telefonica and Liberty Global, will this week begin deeper discussions with the hope of securing investment for a new Joint Venture (JV) to fuel their long-held ambition to cover millions of additional UK homes with full fibre broadband.<\/p>\n","protected":false},"author":1,"featured_media":29934,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[56,32,475],"class_list":["post-29933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-fttp","tag-o2","tag-virgin-media"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nVirgin Media O2 UK Reportedly Seeks Funding for FTTP Rollout - ISPreview UK<\/title>\n<meta name=\"description\" content=\"A number of reports have today claimed that Virgin Media (O2), alongside merger parents Telefonica and Liberty Global, will this week begin deeper\" \/>\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\/2022\/01\/virgin-media-o2-uk-reportedly-seeks-funding-for-fttp-rollout.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Virgin Media O2 UK Reportedly Seeks Funding for FTTP Rollout - 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