Virgin Media O2 Nears Deal to Use Openreach Full-Fibre Network and Pause Own Upgrades

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Virgin Media O2 is reportedly close to agreeing on using Openreach's full-fibre network for customer connections in areas lacking its own coverage, potentially halting its network upgrades.

Virgin Media O2 is nearing an agreement to use Openreach's full-fibre network to connect new customers in areas where its own network does not reach, according to a report by the Financial Times quoted by Telecompaper. This potential deal indicates a strategic move by Virgin Media O2 to leverage Openreach's existing fibre infrastructure rather than continuing with its own network expansion in certain locations.

Openreach, the infrastructure division of BT Group, operates extensive fibre broadband networks across the UK. Virgin Media O2, formed from the merger of Virgin Media and O2, traditionally has developed its own cable and fibre networks to service customers.

By accessing Openreach's full-fibre networks, Virgin Media O2 could reduce the costs and complexities associated with building out its own fibre infrastructure, accelerating service availability to underserved areas. However, this would also mean slowing or halting some of its own network upgrade projects.

The report suggests that this deal is close to finalization, but official confirmation and detailed terms have yet to be publicly disclosed. Such an agreement would reshape competitive dynamics by encouraging network sharing between major UK providers.

This development reflects a broader industry trend toward infrastructure sharing to optimise investment, improve coverage, and enhance broadband service delivery. It also aligns with government policy goals supporting full-fibre adoption throughout the UK.

As of now, Virgin Media O2 and Openreach have not issued formal statements regarding the deal. The impact on customers, timeline for implementation, and how the collaboration will be managed remain to be seen.

Overall, the reported talks mark a significant potential shift in how UK telecom operators pursue fibre broadband expansion, balancing independent network investment against cooperative utilisation of existing fibre assets.