With Merger Complete, Virgin Media O2 Sets Out to Upgrade, Expand Network

In the largest merger globally in a decade, with a price tag of US$44 billion (compared to Sprint/T-Mo at $26 billion), the joint venture of Liberty Global and Telefónica, known as Virgin Media O2, launched yesterday promising to aid in the United Kingdom’s recovery from the pandemic by investing in 5G and fiber optics, the new company said at its launch.

“We are ready to shake up the market and be the competitor the country needs at a time when choice has never been more important,” Lutz Schüler, CEO of Virgin Media O2, said. “Through investment and innovation in cutting-edge infrastructure and future technology, we will connect more people to the things they love, support communities across the country, help businesses to grow, and power the U.K. economy.” 

Calling itself the U.K.’s “new power couple,” the new company is one of the U.K.’s largest, with 47 million connections across broadband, mobile, TV and home phone, while offering connectivity services, applications and digital solutions to U.K. businesses and public sector organizations. It employs around 18,000 people and reported equivalent revenues of US$15.59 billion last year, according to figures announced by Telefonica and Liberty Global. 

The combined company plans to invest US$14.17 billion in upgrading existing infrastructure and expanding the network across the country.

Virgin Media O2 said it is already the nation’s largest gigabit broadband operator, and it plans to deliver those speeds across its entire network by the end of the year. 

“Building on the success of its existing fiber network expansion activity, the business is planning to go further and faster by deploying fiber to millions of additional homes across the country,” the operator said. “A variety of options, including potential partnerships, are currently being worked on to achieve this.”

Coupled with this, the company looks to increase the reliability and quality of mobile coverage by using its increased spectrum holdings to bring 5G services to around 200 towns and cities by the end of June.