Virgin Media O2 has abandoned plans to build a wholesale fibre network to rival BT’s infrastructure, according to Telefónica CEO.
Marc Murtra – boss of one of VMO2’s main backers, Telefónica (alongside Liberty Global) – said the project to build a UK national fixed line operator, operating as NetCo, was “stopped”.
VMO2, which was formed when Virgin Media merged with O2’s UK division last year, said it would spin off the former company’s fibre network into a new subsidiary, NetCo, which would compete directly with Openreach.
Openreach maintains telephone cables, ducts, cabinets and exchanges that connect the vast majority of homes and businesses across the UK.
The plan was for VMO2 to serve its existing broadband users by becoming a paying customer of NetCo, which was expected to be free to sign up other ISPs as well.
However, an ongoing review at Telefonica, which is looking to tackle the Spanish telco’s debt burden, means the project has been canned.
Speaking on NetCo during the company’s recent Q2 2025 earnings call for investors, Murtra said: “The UK NetCo is not paused there and it’s not part of the strategic review. That is a decision we made and announced, and that has to do with our industrial strategy and industrial way of working.”
Murtra was subsequently asked by Reuters for clarification and confirmed: “The project is stopped.”
VMO2 told The Register it had disclosed that the NetCo process was paused and being reviewed during its Q1 results in May.
VMO2 is one of the UK’s biggest fibre broadband providers, with a fibre footprint of more than 7 million premises today and a total fixed network reach of 18.5 million premises.
However it is navigating a competitive market, ending Q2 with 5.7 million customers, a 51,000 reduction on the previous quarter. Broadband connections fell from to 5,738,800 from 5,811,200 in 2024.
In May, the company announced it was to merge its enterprise unit with IT and telecoms reseller Daisy Group. The new joint venture will be 70% owned by VMO2, with combined revenues of around £1.4 billion.