{"id":32790,"date":"2023-02-23T07:40:49","date_gmt":"2023-02-23T07:40:49","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=32790"},"modified":"2023-02-23T07:51:55","modified_gmt":"2023-02-23T07:51:55","slug":"virgin-media-o2-bring-1gb-broadband-to-16-million-uk-premises","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/02\/virgin-media-o2-bring-1gb-broadband-to-16-million-uk-premises.html","title":{"rendered":"Virgin Media O2 Bring 1Gb Broadband to 16 Million UK Premises"},"content":{"rendered":"

The latest Q4 2022 results from UK ISP and mobile operator VMO2 (Virgin Media<\/a> and O2<\/a>) has seen their broadband base reach 5.653m customers (up by 22.7k in Q4 vs 19.1k in Q3), while their gigabit coverage added another 188,000 premises in the quarter to total 16.14 million (54% of the UK). Now comes Nexfibre<\/a>.<\/p>\n

In case anybody has forgotten, Virgin Media<\/a>’s most recent target for their long-running fixed-line network expansion – Project Lighting<\/strong> – was to cover 16 million premises by the end 2022, and they’ve successfully achieved that by expanding their coverage to a total of 519,000 premises during the course of last year (virtually all of this via FTTP<\/a> – mix of RFoG and XGS-PON). In total, Project Lightning added 3.2m premises and is now largely completed.<\/p>\n

The operator’s civil engineering teams are now switching their build focus toward the new wholesale Joint Venture company – Nexfibre<\/a><\/strong>, which is backed by Telef\u00f3nica, Liberty Global and InfraVia Capital Partners. This is the reason why Virgin’s own build actually picked up during Q4, instead of slowing down as Project Lightning completes.<\/p>\n

In fact, the 188,000 premises passed in Q4 included 24,000 premises that “were subsequently transferred to the new fibre joint venture, nexfibre<\/a><\/em>“. Virgin Media<\/a> (VMO2) is acting as the anchor tenant ISP for this joint venture and will provide build services to nexfibre. The company aspires to cover \u201cup to<\/em>\u201d 7 million additional UK homes (here<\/a>) – staring with 5 million by 2026 (i.e. those homes not currently served by VMO2). The latest release reaffirms this by saying that it will expand VMO2’s footprint to 80% of the UK.<\/p>\n

The catch is that Nexfibre has, thus far, not been able to announce any wholesale agreements with other ISPs. We should point out that Virgin Media’s own fixed line network is not yet available to wholesale, although they are prepared to do that at some point, and we very much expect they will. But they may want to get more of their XGS-PON<\/strong> (FTTP<\/a>) upgrade programme in Hybrid Fibre Coax<\/strong> (HFC) areas completed first (here<\/a>).<\/p>\n

Project Lightning Rollout Since 2017<\/strong><\/span>
\nQ4 2022 = 188,000 Premises
\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

In Mobile, the operator has expanded 5G<\/a> connectivity to more than 1,600 towns and cities, as well as boosting 4G<\/a> capacity in 725,000 postcodes during 2022. “We are set to deliver 5G<\/a> services to 50 per cent of the UK population in 2023<\/em>,” said the release. But rivals EE<\/a> and Three UK<\/a> achieved that figure almost a year ago.<\/p>\n

The operator also completed the move of all Virgin Mobile traffic to O2<\/a>, although their customer plan migrations to O2<\/a> are due to start in March 2023 and complete later this year.<\/p>\n

Quarterly UK Customer (Connection) Figures – Q4 2022<\/strong><\/span>
\n5,653,800<\/span> Fixed Broadband – (up from 5,631,100<\/span> in Q3)
\n44,650,000<\/span> Mobile inc. Wholesale – (up from 44,155,100)<\/p><\/blockquote>\n

Elsewhere, VMO2 announced a multi-million-pound investment that will see the creation of a new HQ based in Paddington from the end of 2024, following the closure of their Hammersmith office. The operator will also be closing their Slough office, with employees able to work from their existing major site in Reading instead, which opened in 2019. The company is not looking to make any reduction in headcount as a result of the Slough office closure, which is planned to take place in June 2023.<\/p>\n

On the financial front, VMO2 reported total transaction adjusted revenue of \u00a32,731.8m in Q4 2022, which is up from \u00a32,583.2m last quarter.<\/p>\n

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

“In our first full year as Virgin Media O2, we reinforced our position as the biggest challenger in the market. We delivered a strong performance against our guidance, took big steps forward in our integration plans, hit our synergy targets, and showed the commercial momentum of our merged business despite a challenging macroeconomic backdrop.<\/p>\n

We invested \u00a32.1 billion in 2022 to deliver even more for our customers while bringing gigabit speeds and 5G<\/a> to new parts of the country, with plans to accelerate the rollout this year \u2013 providing more choice and enhancing competition like never before. This investment, combined with continued innovation and our unwavering customer-first approach, delivered an increase in our fixed and mobile contract bases, as well as driving convergence with 1.3 million people now taking one of our Volt bundles.<\/p>\n

We have firm foundations in place, a clear strategy and a team that\u2019s focused on building long-term commercial momentum and I\u2019m confident we\u2019ll deliver our 2023 guidance.”<\/p><\/blockquote>\n

In consumer, VMO2’s flagship converged Volt bundles have also continued to perform well with 1.3 million customers now taking the products in a little over one year since the original launch. Virgin also saw an increase in average speeds across the broadband base of 41% year-on-year to 301Mbps, which was partly driven by some recent speed boosts to their slower tiers.<\/p>\n

Once again there were no updates on their Project Mustang<\/strong> progress, which is upgrading 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 by 2028 (here<\/a> and here<\/a>) – at a cost of c.\u00a3100 per home. A huge amount of engineering is currently taking place for this, but VMO2 won’t announce new products until they’ve completed a big enough portion of it.<\/p>\n

Virgin Media also has the “option<\/em>” to separately wholesale out access to their existing fixed network of 16 million premises, but they haven’t announced a decision on that yet. Securing support from other ISPs for this is key to its success, but that requires tricky negotiations (issues over exclusivity etc.) and implementation can be both costly and complex for providers. TalkTalk<\/a>, Vodafone<\/a> and Sky Broadband<\/a> are likely targets.<\/p>\n","protected":false},"excerpt":{"rendered":"

The latest Q4 2022 results from UK ISP and mobile operator VMO2 (Virgin Media and O2) has seen their broadband base reach 5.653m customers (up by 22.7k in Q4 vs 19.1k in Q3), while their gigabit coverage added another 188,000 premises in the quarter to total 16.14 million (54% of the UK). Now comes Nexfibre.<\/p>\n","protected":false},"author":1,"featured_media":31718,"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-32790","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 Bring 1Gb Broadband to 16 Million UK Premises - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The latest Q4 2022 results from UK ISP and mobile operator VMO2 (Virgin Media and O2) has seen their broadband base reach 5.653m customers (up by 22.7k in\" \/>\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\/2023\/02\/virgin-media-o2-bring-1gb-broadband-to-16-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 Bring 1Gb Broadband to 16 Million UK Premises - 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