Virgin Media O2, Liberty Global and Telefónica to create new rival for Openreach

Virgin Media O2, along with major shareholders, Liberty Global and Telefónica, has revealed plans to create a national fixed network company that can challenge BT's Openreach in the UK. The telco signaled its intention to go toe-to-toe with Openreach and noted that NetCo will "underpin full fiber take-up and roll-out," and provide new financing optionality and a platform for potential altnet consolidation opportunities.

“This is a logical evolution of our fiber strategy that creates a clear, focused, and scaled network entity within the Virgin Media O2 family which underpins our shift to a fully fiber network and reinforces our position as the leading challenger to Openreach in the market," said Lutz Schüler, CEO of Virgin Media O2.

"Working closely with our shareholders, this network business will provide a platform for potential altnet consolidation and wholesale opportunities in future, offering widescale network choice for other providers, as well as giving financing optionality. While nothing changes today work is well underway and you’ll hear more from us later in the year.”