Because it established its new model in June 2021, Virgin Media O2 stated it will proceed the work carried out by Virgin Media in accelerating gigabit broadband all through the UK. In its newest transfer, it has introduced its intention to improve its mounted community to full fibre to the premises (FTTP), with completion in 2028.
As well as, the corporate stated that the funding within the new community will bolster its long-term community technique, gas future connectivity innovation for customers and companies, and create choices to doubtlessly pursue the broadband wholesale market within the UK.
Though it claims the quickest speeds at scale within the UK, Virgin Media O2 stated it is going to improve the cable component of its fibre-rich community and make use of “cutting-edge” full-fibre expertise that’s able to delivering symmetrical 10Gbps obtain and add speeds, with the improve plan masking 14.3 million cable premises, after bearing in mind the operator’s current 1.2 million FTTP properties.
The corporate will proceed to keep up and develop its current cable community through the improve interval, which incorporates assembly its 2021 gigabit targets and utilising the community’s multigigabit functionality to ship speeds above 2Gbps in future. This, it stated, will likely be achieved by way of the mixture of DOCISIS 3.1 cable and FTTP expertise over the approaching years.
Virgin Media O2 can be guaranteeing that it’s going to ship speeds of 1.1Gbps throughout its complete community by the tip of this yr, assembly the UK authorities’s goal to take connectivity on the pace to 85% of the UK inhabitants by 2025, 4 years forward of schedule.
The corporate can even proceed to develop its fibre footprint to new areas by way of its Venture Lightning programme and is actively exploring additional growth alternatives to achieve hundreds of thousands extra premises, with discussions ongoing with strategic and monetary companions.
Relating to finance, the programme is backed by Virgin Media O2’s shareholders, Liberty World and Telefónica, and is described as worth accretive resolution. It was taken following latest deployment trials, an intensive evaluation of different community situations and the potential alternative to enter the mounted wholesale market.
The corporate additionally believes that by utilising its totally ducted community, the improve will likely be one of many UK’s most effective fibre roll outs, costing round £100 per premises handed. Buyer set up prices will likely be along with this, with installs operated on an on-demand foundation as roll-out and income enhancement alternatives start. In response to the agency, this compares with roughly circa £60 per premises for an improve to a full DOCSIS 4 cable community, and it eliminates the necessity to put money into future variations of DOCSIS because the demand for sooner speeds and capability proceed to rise.
Virgin Media O2 calculates that the whole improve prices over the estimated seven-year lifetime of the venture will symbolize a modest annual improve to Virgin Media O2’s present capital expenditure price range of roughly £2bn per yr. The corporate careworn that such expenditures don’t alter for any of the income advantages which can be anticipated to accrue to Virgin Media O2’s client, enterprise and wholesale companies from the FTTP improve.
“Our mission is to improve the UK, and we’re doing precisely that. This main new fibre improve programme will see us start the following evolution of our community, constructing on the funding, firepower and management we have already got and guaranteeing we’re fibre match for the long run,” stated Virgin Media O2 CEO Lutz Schüler.
“Proper now, we’ve got the UK’s main gigabit community, and this improve means we’ll be even stronger for the a long time forward, pursuing new alternatives and placing phrases into motion. In 60 days because the formation of Virgin Media O2, we’ve got achieved lots, however that is just the start. With robust foundations for development in place, we’ll increase connectivity, present better selection and be a challenger the nation can depend on.”
Because it was saying the brand new fibre community, Virgin Media O2 reported its second quarter 2021 pro-forma monetary outcomes, the primary set of monetary posts because the enterprise was shaped on 1 June. These confirmed the corporate added 36,000 broadband subscribers within the second quarter, elevated its fixed-line buyer base to five.7 million, and added virtually 1,000,000 cell connections within the quarter when bearing in mind web of issues (IoT) SIMs and providers supplied to different operators, comparable to giffgaff and Sky Cell, on the O2 community.
The corporate stated the outcomes highlighted its early convergence energy, with greater than 40% of Virgin Media O2’s broadband prospects additionally taking a cell contract. The enterprise’ mounted community has now been expanded by 2.5 million premises by way of Venture Lightning, with 5G providers reaching virtually 200 areas and 4G capability upgraded in 45,000 postcodes because the begin of 2021.