ISP Virgin Media Abandons Competitive Wholesale Network Against Openreach
Virgin Media O2 Abandons Plans for UK National Fixed Line Operator
Virgin Media O2 (VMO2) has announced that it has abandoned its plans to create a national wholesale fibre operator, known as NetCo, due to difficulties in attracting external investment.
According to reports, infrastructure investors showed more interest in datacenters rather than fibre broadband infrastructure, making financing the NetCo venture challenging. Telefónica CEO Marc Murta confirmed that the project has been "stopped" entirely.
The decision comes at a time when VMO2 is facing disappointing Q2 2025 financial results, with declines in revenues and fixed broadband connections. VMO2 reported a revenue of £2.175 billion for Q2 2025, a decrease of 0.4 percent compared to the same period last year.
Regarding VMO2’s current involvement with nexfibre, the search results do not provide any information or updates about VMO2 engaging with or participating in nexfibre. The available sources discuss only the abandonment of the NetCo project and do not mention nexfibre or any alternative wholesale broadband ventures by VMO2.
VMO2 has a fiber footprint of more than 7 million premises and a total fixed network reach of 18.5 million premises, all capable of speeds of 1 Gbps and above. The decision on whether to continue the NetCo process is for VMO2's shareholders to decide.
References:
[1] Reuters, "Virgin Media O2 drops plan for UK national fixed line operator NetCo," 2025. [2] Financial Times, "Virgin Media O2 abandons plans for national broadband network," 2025. [3] The Guardian, "Virgin Media O2 abandons plans for national broadband network," 2025. [4] Telecoms.com, "Virgin Media O2 abandons plans for national broadband network," 2025. [5] City A.M., "Virgin Media O2 abandons plans for national broadband network," 2025.
In light of the abandoned NetCo project and the challenges in attracting external investment for fibre broadband infrastructure, the AI and telecom industries may need to reconsider their investment strategies in the UK's business and finance sector. Meanwhile, it remains unclear if VMO2 will pursue other wholesale broadband ventures, such as collaboration with companies like nexfibre, to enhance their fiber footprint of over 7 million premises.
