Virgin Media O2 announces a change that will increase speeds for OTHER providers

A MAJOR broadband company is to create a national fixed-line network company that will reach more than 20 million homes.

Virgin Media O2, together with its shareholders, announced last Friday that they will create the country's largest dedicated fixed network challenger.

It will be the main alternative to BT's Openreach.

It will also open its existing fixed broadband network to wholesale by other internet providers.

The new company, known as NetCo, will focus on completing Virgin Media O2's ongoing fiber upgrade, converting their existing cable network to full fiber.

All customers under Virgin Media O2's service will automatically connect to NetCo's full fiber broadband from day one.

Virgin Meda O2's mobile network alongside nextfibre – an independent fiber joint venture between Virgin's shareholders and Infravia – will operate separately and focus on expanding into greenfield areas.

After all planned fiber deployments are completed, Netco and nextfibre will reach a combined total of up to 23 million fully fiber-optic homes.

The development of Netco is currently between Virgin Media O2 and its shareholders.

The company will announce further details and operational timelines as the project progresses.

Lutz Schüler, CEO of Virgin Media O2, said: “This is a logical evolution of our fiber strategy that creates a clear, focused and scaled network entity within the Virgin Media O2 family that supports our shift to a full fiber network and strengthens our position as the biggest challenger to Openreach in the market.

“Working closely with our shareholders, this network company will provide a platform for potential altnet consolidation and wholesale opportunities in the future, offering broad network choice for other providers and financing options.

“While nothing will change today, work is well underway and you will hear more from us later this year.”

Most providers today have spent a lot of time developing their systems to work on the BT Openreach network.

It will take a lot of money and time to adapt to a new platform like Netco's.

Another challenge providers face is advertising new plans to consumers without causing confusion with their existing service.

It is difficult to say at this stage whether the “new” wholesale network will offer as much flexibility as Openreach.

It comes after millions of broadband, mobile and TV customers are expected to face a huge bill in the coming weeks.

And a major energy supplier with 6.8 million customers has sold its broadband business – what does this mean for you?