Virgin Media O2 to spin out its UK fixed network

LONDON: Virgin Media O2 said on Friday it planned to spin out its cable and fibre network, which serves 16 million homes, into a wholly owned new network company to enable it to better challenge BT Openreach, the British market leader.

Virgin Media O2, jointly owned by Liberty Global and Telefonica, owns the second largest network in Britain after BT Openreach, which is used by broadband companies Sky, TalkTalk and Vodafone as well as BT’s consumer customers.

Virgin Media said the change would underpin its plan to upgrade all of its customers to fibre. It does not currently have rival broadband providers on its network but it said the move would create a platform for wholesale opportunities.