Summary Bullets:

• Virgin Media O2, Liberty Global, and Telefónica announce ‘NetCo,’ a wholesale national fiber provider to secure new financing and consolidate the UK altnet market.

• Fragmentation of the value chain illustrates a shift from the end-to-end infrastructure-to-customer ownership model to a layered model focused on separated wholesale and retail operations.

On February 16, 2024, Virgin Media O2, Liberty Global, and Telefónica announced plans to form a national fixed network company (NetCo) in the UK, focused on completing Virgin Media O2’s full-fiber network rollout and opening up opportunities to explore new sources of finance as well as to facilitate consolidation among altnets. The goal is to be positioned as the leading nationwide challenger to BT Group’s Openreach. The NetCo will complete the current ongoing upgrade program of overlaying full fiber on the existing cable network.

Continue reading “Financial Engineering Driving the Rise of NetCos” →