{"id":33787,"date":"2023-05-10T07:51:24","date_gmt":"2023-05-10T06:51:24","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=33787"},"modified":"2023-05-11T08:47:21","modified_gmt":"2023-05-11T07:47:21","slug":"virgin-media-o2-sees-uk-broadband-growth-as-nexfibre-expands","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/05\/virgin-media-o2-sees-uk-broadband-growth-as-nexfibre-expands.html","title":{"rendered":"Virgin Media O2 Sees UK Broadband Growth as Nexfibre Expands UPDATE"},"content":{"rendered":"

Virgin Media<\/a> and O2<\/a> (VMO2) has published their latest Q1 2023 results, which saw broadband customers grow to total 5,682,600 (up by 28.8k vs 22.7k in Q4 2022) and 5G<\/a> mobile expand its coverage to 2,100 towns and cities. The operator also added 107,800 premises to their new full fibre (FTTP<\/a>) network (primarily for nexfibre<\/a>).<\/p>\n

Sadly, the latest quarterly results did not contain any major new developments, such as updates on VMO2’s recently proposed \u00a33bn acquisition of CityFibre<\/a> (here<\/a>) or the reports that they plan to sell off all or part of their stake in the UK\u2019s largest mobile tower network, which could fetch around \u00a3750m or half its stake (here<\/a>). But we did learn that they’re on course to migrate Virgin Mobile customers to O2<\/a> plans by the end of 2023 (here<\/a>).<\/p>\n

On network build, we should point out that VMO2 has replaced their old “Homes Passed<\/em>” figure for network coverage with “Homes Serviceable<\/em>“, which essentially means that this figure will now combine their coverage for both Virgin Media<\/a>’s fixed line network and those over partner networks where they have a service agreement (e.g. nexfibre<\/a>).<\/p>\n

Virgin Media<\/a> largely completed their own broadband focused Project Lightning<\/strong> network expansion at the end of 2022. But since then the vast majority of new XGS-PON powered Fibre-to-the-Premises<\/strong> (FTTP<\/a>) broadband build has come under nexfibre<\/a><\/strong>, which is a new joint venture company setup by Telef\u00f3nica, Liberty Global and InfraVia Capital Partners (here<\/a>).<\/p>\n

NOTE:<\/strong> VMO2’s own gigabit-capable broadband network – a mix of FTTP<\/a> (RFoG and XGS-PON) and Hybrid Fibre Coax (HFC) – covers 16.274 million UK “Homes Serviceable<\/em>” when combined with Nexfibre<\/a> (or c.16.1m for just VMO2).<\/div>\n

Just to recap. The aim of nexfibre is to expand full fibre to reach “up to<\/em>” 7 million additional UK homes – staring with 5 million by 2026 (i.e. those homes not currently served by VMO2). In theory, this could push the combined VMO2 and nexfibre footprint to around 80% of UK premises by 2028 (up to 23 million premises), which is roughly comparable with Openreach<\/a>’s rival FTTP target (25m by Dec 2026).<\/p>\n

However, unlike VMO2’s currently closed network, nexfibre’s infrastructure will be open to wholesale access by other broadband ISPs to harness (Virgin is the first and – currently only – anchor tenant on this new network). The physical nexfibre build technically started in Q4 2022, but most of the new build this quarter is “primarily<\/em>” for nexfibre (we don’t get a clear split between networks, but VMO2 should only account for a small slice).<\/p>\n

Nexfibre Rollout Since 2023<\/strong><\/span>
\nQ1 2023 = 107,800 Premises
\nQ4 2022 = 24,000 Premises<\/p>\n

NOTE: A small portion of the above premises (homes serviceable) figure will include some infill build for VMO2,<\/p><\/blockquote>\n

In addition, VMO2 said the upgrade of their existing Hybrid Fibre Coax (HFC) network – accounting for c.14.3m premises – to FTTP (XGS-PON) also remains on-track (aka \u2013 Project Mustang<\/strong>). We recently covered all of this in more detail and revealed that VMO2 plan to start putting customers live on their upgraded XGS-PON infrastructure by the end of 2023 (here<\/a>) – they’ve already done almost 1 million VMO2 premises.<\/p>\n

As for Mobile, the operator has now reached 50% outdoor 5G<\/a> population coverage in more than 2,100 towns and cities, and they claim to be on-track to deliver 5G<\/a> services to over 50% of the outdoor UK population in 2023.<\/p>\n

Quarterly UK Customer (Connection) Figures – Q1 2023<\/strong><\/span>
\n5,682,600<\/span> Fixed Broadband – (up from 5,653,800<\/span> in Q4 2022)
\n44,946,900<\/span> Mobile inc. Wholesale – (up from 44,650,000<\/span>)<\/p><\/blockquote>\n

On the financial front, VMO2 reported total transaction adjusted revenue of \u00a32,602.6<\/span>m in Q1 2023, which is down from \u00a32,731.8m last quarter.<\/p>\n

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

“In the first quarter we delivered a solid performance as we laid the groundwork for further progress through the remainder of the year.<\/p>\n

As the largest gigabit network in the country our speed leadership continues, with customers taking broadband that is five times faster than the UK average. We continue to invest in the upgrade and expansion of our footprint and we are on-target to cover 80% of the country with full fibre. When coupled with bringing 5G services to more areas and reaching half of the UK this year, we are playing a big role in future-proofing the UK\u2019s digital infrastructure.<\/p>\n

Our integration activity and the delivery of run-rate synergies is progressing at pace, with the migration of Virgin Mobile customers to O2 plans. We expect further run-rate synergies throughout the year including Mobile backhaul integration using our own fixed network.<\/p>\n

With strong foundations in place and as commercial momentum builds, supported by price increases, we remain on track to meet our 2023 guidance.”<\/p><\/blockquote>\n

Finally, the average download speed across their fixed broadband base increased by 36% year-on-year to 315 Mbps.<\/p>\n

UPDATE 11th May 2023<\/strong><\/p>\n

VMO2 has confirmed that construction revenues for Nexfibre are expected to be around \u00a3550 to \u00a3650 per home, which is similar to their Project Lightning build cost under Virgin Media. But we think this should actually be considered an improvement, since Nexfibre will be going into areas not previously reached by VMO2 and that tends to attract a higher cost.<\/p>\n","protected":false},"excerpt":{"rendered":"

Virgin Media and O2 (VMO2) has published their latest Q1 2023 results, which saw broadband customers grow to total 5,682,600 (up by 28.8k vs 22.7k in Q4 2022) and 5G mobile expand its coverage to 2,100 towns and cities. The operator also added 107,800 premises to their new full fibre (FTTP) network (primarily for nexfibre).<\/p>\n","protected":false},"author":1,"featured_media":27199,"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-33787","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 UK Broadband Growth as Nexfibre Expands UPDATE - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Virgin Media and O2 (VMO2) has published their latest Q1 2023 results, which saw broadband customers grow to total 5,682,600 (up by 28.8k vs 22.7k in Q4\" \/>\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\/05\/virgin-media-o2-sees-uk-broadband-growth-as-nexfibre-expands.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 UK Broadband Growth as Nexfibre Expands UPDATE - 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