CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Virgin Media O2 nears deal to use BT’s broadband network, FT reports

By Reuters News

Oct 30 (Reuters) - Virgin Media O2 is nearing a deal to use BT's BT.L fibre broadband network, the Financial Times reported on Friday, citing people familiar with the matter.

Here's what to know:

  • Under the proposed deal, Virgin Media O2 would use BT’s Openreach network to serve new customers in areas not covered by its existing network, the report said

  • Virgin Media O2 was also pausing efforts to upgrade its cable network to fibre as part of a broader cost-cutting programme, according to the report

  • Virgin Media O2 and BT did not immediately respond to Reuters requests for comment outside regular business hours

  • The report comes after Virgin Media O2's owners last week said they would challenge the competition regulator's opposition to their £2 billion ($2.67 billion) acquisition of fibre network operator Netomnia rather than offer remedies to address its concerns

  • Nexfibre, a joint venture between Virgin Media O2's co-owners Liberty Global and Telefonica and infrastructure investor InfraVia, agreed in February to buy Substancial Group, parent of Britain's second-largest alternative fibre network operator Netomnia, to take on BT Openreach

  • The companies said the deal would unlock about £3.5 billion of investment in the UK fibre market

($1 = 0.7481 pounds)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.