{"id":31790,"date":"2022-11-02T07:49:05","date_gmt":"2022-11-02T07:49:05","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=31790"},"modified":"2022-11-02T07:51:02","modified_gmt":"2022-11-02T07:51:02","slug":"virgin-media-o2-sees-project-lightning-add-3-million-uk-premises","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2022\/11\/virgin-media-o2-sees-project-lightning-add-3-million-uk-premises.html","title":{"rendered":"Virgin Media O2 Sees Project Lightning Add 3 Million UK Premises"},"content":{"rendered":"

The latest Q3 2022 results from broadband ISP and mobile giant VMO2 (Virgin Media<\/a> and O2<\/a>) has seen their fixed broadband base reach 5.63m customers (up by 19.1k in Q3 vs 16k in Q2), while their gigabit network coverage added 115,000 premises (3 million delivered via Project Lightning) and 5G<\/a> is available in over 800 towns and cities.<\/p>\n

The biggest development for VMO2 over the past quarter has been their creation of a new Joint Venture, which aims to build a wholesale focused Fibre-to-the-Premises<\/strong> (FTTP<\/a> \/ XGS-PON) broadband network to cover \u201cup to<\/em>\u201d 7 million additional UK homes (here<\/a>). On top of that, they also got into a legal tussle with BT<\/a> over mobile migrations (here<\/a>) and have boosted some of their broadband speeds (here<\/a>).<\/p>\n

More recently, VMO2 has also extended their testing of OpenRAN mobile technologies to field trials (here<\/a>), started to make their broadband services available at existing OFNL sites (here<\/a>), improved their ‘Essentials’ social tariff to be cheaper and offer 50Mbps speeds (here<\/a>) and they also claim to have launched the country’s “Fastest WiFi<\/a> Guarantee<\/em>” (here<\/a>) – even though it’s not actually the fastest.<\/p>\n

Finally, the operator also appears to have shelved a proposed \u00a33bn merger with TalkTalk<\/a> (here<\/a>) and they’re considering a sale of their 50% stake in mast operator Cornerstone<\/a> (here<\/a>).<\/p>\n

Quarterly UK Customer (Connection) Figures – Q3 2022<\/strong><\/span>
\n5,631,100<\/span> Fixed Broadband – (up from 5,612,000<\/span> in Q2)
\n44,155,100 Mobile inc. Wholesale – (up from 43,526,400<\/span>)<\/p><\/blockquote>\n

Elsewhere, the operator’s Project Lighting<\/strong> network expansion has now reached an additional 3 million premises since it began some years ago (c.1.7 million via FTTP<\/a> and the rest as Hybrid Fibre Coax<\/strong>), and their quarterly pace of build has been fairly flat. As a result of this, VMO2’s fixed line network now covers 15.98 million UK homes passed (during the whole of 2022 they expect to add a total of 500,000 premises).<\/p>\n

Project Lightning Rollout Since 2017<\/strong><\/span>
\nQ3 2022 = 115,000 Premises
\nQ2 2022 = 114,000 Premises
\nQ1 2022 = 101,000 Premises
\nQ4 2021 = 93,000 Premises
\nQ3 2021 = 67,000 Premises
\nQ2 2021 = 89,000 Premises
\nQ1 2021 = 80,000 Premises (impacted by COVID-19 lockdown)
\nQ4 2020 = 115,000 Premises (some impact from COVID-19)
\nQ3 2020 = 125,000 Premises
\nQ2 2020 = 93,000 Premises (impacted by COVID-19 lockdown)
\nQ1 2020 = 93,000 Premises (some impact from COVID-19)
\nQ4 2019 = 154,000 Premises
\nQ3 2019 = 119,000 Premises
\nQ2 2019 = 130,000 Premises
\nQ1 2019 = 102,000 Premises<\/p>\n

NOTE 1:<\/strong> Between Q1 2017 and Q4 2018 Virgin added 1,017,000 premises under Project Lightning, which is an average of 127,125 per quarter.<\/p><\/blockquote>\n

On the financial front, VMO2 reported total transaction adjusted revenue of \u00a32,583.2m in Q3 2022, which is up from \u00a32,548.5m last quarter.<\/p>\n

Lutz Sch\u00fcler, CEO of Virgin Media<\/a> O2<\/a>, said:<\/strong><\/p>\n

“This quarter has seen an increasingly challenging macroeconomic backdrop against which we continue to provide high speed and quality services whilst supporting our customers and people through these challenging times. Additionally, we accelerated our growth in profitability as our commercial momentum advanced and we continue to make strong progress on our three growth waves of expanding and upgrading our network, realisation of synergies and digitalising our business. Our converged offering combined with our improved understanding of our customer, through digitalisation, is underpinning our development and customer-value proposition.<\/p>\n

\u201cThe third quarter has been one of strong strategic and operational progress supporting our delivery for the rest of the year and beyond. We have grown our mobile and fixed customer base, improved our product offering, hit a major convergence milestone and achieved another quarter of EBITDA growth. We reaffirm our 2022 guidance.”<\/p><\/blockquote>\n

Sadly, we weren’t surprised to find a lack of updates on their Project Mustang<\/strong> progress, which is currently working to upgrade the 14.3 million UK premises covered by their old HFC infrastructure to the latest 10Gbps capable XGS-PON<\/strong> full fibre (FTTP<\/a>) technology (here<\/a> and here<\/a>) – at a cost of c.\u00a3100 per home<\/span>. We’re seeing a lot of work occurring on this, but VMO2 intend to launch it alongside new products, and thus they’ll want to ensure a reasonable degree of coverage before announcing anything (i.e. we expect to hear more on this in 2023).<\/p>\n

On top of that, VMO2 only provided a small update on their plan to rollout FTTP to an additional 7 million UK premises – under a new entity – to new greenfield areas by 2027, which will also be offered at wholesale to rival ISPs. The formation of the related fibre joint venture is said to be “still on-track for clearance in the fourth quarter with preparation well underway<\/em>“. This is a major change, and we’ll hear more about it in 2023.<\/p>\n

Virgin Media<\/a> also has the “option<\/em>” to separately wholesale out access to their existing network of 16 million premises and we expect them to do that, but they haven’t announced a decision on that yet. Securing support from other ISPs for this is key to its viability, but that requires tricky negotiations (issues over exclusivity etc.) and implementation can be both costly and complex for providers.<\/p>\n

We should add that the average speed across the company\u2019s broadband base increased 29% year-on-year to 261Mbps and they’re on-track to deliver 5G<\/a> services to 50% of the UK population in 2023 (EE<\/a> and Three UK<\/a> have already achieved this).<\/p>\n","protected":false},"excerpt":{"rendered":"

The latest Q3 2022 results from broadband ISP and mobile giant VMO2 (Virgin Media and O2) has seen their fixed broadband base reach 5.63m customers (up by 19.1k in Q3 vs 16k in Q2), while their gigabit network coverage added 115,000 premises (3 million delivered via Project Lightning) and 5G is available in over 800 […]<\/p>\n","protected":false},"author":1,"featured_media":29173,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[406,472,419,56,45,42,88,32,34,475],"class_list":["post-31790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-5g","tag-business","tag-docsis3-1","tag-fttp","tag-video-streaming","tag-iptv","tag-ipv6","tag-o2","tag-statistics","tag-virgin-media"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nVirgin Media O2 Sees Project Lightning Add 3 Million UK Premises - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The latest Q3 2022 results from broadband ISP and mobile giant VMO2 (Virgin Media and O2) has seen their fixed broadband base reach 5.63m customers (up by\" \/>\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\/11\/virgin-media-o2-sees-project-lightning-add-3-million-uk-premises.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 Sees Project Lightning Add 3 Million UK Premises - 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