Virgin Media O2 nears deal to use BT’s broadband network, FT reports (updated)
UPDATE 1-Virgin Media O2 nears deal to use BT’s broadband network, FT reports Adds responses from Virgin Media O2 and BT in 3rd bullet
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 declined to comment when contacted by Reuters
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)
(Reporting by Disha Mishra in Bengaluru; Editing by Subhranshu Sahu)
((Disha.Mishra@thomsonreuters.com))
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