Virgin Media O2 reportedly in talks with rival ISPs over wholesale service

5 Oct 2021

Virgin Media O2 (VMO2) is said to be in discussions with several of the UK’s high-profile ISPs regarding the possibility of offering a wholesale service over its fixed line infrastructure, while it is reportedly conducting talks with Sky which could see the latter become an investor in the upgrading of its network to full fibre.

With The Sunday Telegraph having first reported on these developments last weekend, a subsequent report from Bloomberg cited four unnamed sources with knowledge of the matter as confirming that talks between VMO2 and both Vodafone Group and TalkTalk were ongoing. According to that news outlet, it was suggested that the discussions with Vodafone Group could also lead to a mobile co-investment deal, as the two companies already share a mobile joint venture company (Cornerstone Telecommunications Infrastructure Limited).

Meanwhile, with VMO2 also understood to be in talks with Sky regarding the potential introduction of a wholesale service, Reuters noted that the discussions between these two companies extend to the latter possibly investing in the former’s planned expansion and upgrade of its fixed broadband network. Amid suggestions that a deal between VMO2 and Sky could even see the former spin out its entire cable network into a joint venture, it was noted that talks remain at an early stage and involve a number of investment structures, according to a person with knowledge of the matter cited by Reuters.

United Kingdom, O2 UK, Sky, TalkTalk, Virgin Media, Virgin Media O2 (VMO2), Vodafone UK