Because it established its new model in June 2021, Virgin Media O2 mentioned it could 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 fastened community to full fibre to the premises (FTTP), with completion in 2028.
As well as, the corporate mentioned that the funding within the new community will bolster its long-term community technique, gasoline future connectivity innovation for shoppers and companies, and create choices to probably pursue the broadband wholesale market within the UK.
Despite the fact that it claims the quickest speeds at scale within the UK, Virgin Media O2 mentioned it should improve the cable aspect of its fibre-rich community and make use of “cutting-edge” full-fibre know-how 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 present 1.2 million FTTP properties.
The corporate will proceed to take care of and develop its present 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 mentioned, will likely be achieved via the mixture of DOCISIS 3.1 cable and FTTP know-how over the approaching years.
Virgin Media O2 can also be guaranteeing that it’ll ship speeds of 1.1Gbps throughout its total community by the tip of this yr, assembly the UK authorities’s goal to take connectivity on the velocity to 85% of the UK inhabitants by 2025, 4 years forward of schedule.
The corporate can even proceed to broaden its fibre footprint to new areas via its Undertaking 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 current deployment trials, a radical evaluation of other community situations and the potential alternative to enter the fastened wholesale market.
The corporate additionally believes that by utilising its totally ducted community, the improve will likely be one of many UK’s best 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. Based on 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 spend money on future variations of DOCSIS because the demand for sooner speeds and capability proceed to rise.
Virgin Media O2 calculates that the overall improve prices over the estimated seven-year lifetime of the challenge will characterize a modest annual enhance to Virgin Media O2’s present capital expenditure price range of roughly £2bn per yr. The corporate pressured that such expenditures don’t alter for any of the income advantages which might be anticipated to accrue to Virgin Media O2’s shopper, 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 longer term,” mentioned Virgin Media O2 CEO Lutz Schüler.
“Proper now, we now have the UK’s main gigabit community, and this improve means we’ll be even stronger for the many years forward, pursuing new alternatives and placing phrases into motion. In 60 days for the reason that formation of Virgin Media O2, we now have achieved loads, however that is only the start. With robust foundations for development in place, we are going to increase connectivity, present better selection and be a challenger the nation can depend on.”
Because it was asserting the brand new fibre community, Virgin Media O2 reported its second quarter 2021 pro-forma monetary outcomes, the primary set of economic posts for the reason that enterprise was fashioned 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 nearly 1,000,000 cellular connections within the quarter when bearing in mind web of issues (IoT) SIMs and companies supplied to different operators, reminiscent of giffgaff and Sky Cellular, on the O2 community.
The corporate mentioned the outcomes highlighted its early convergence energy, with greater than 40% of Virgin Media O2’s broadband prospects additionally taking a cellular contract. The enterprise’ fastened community has now been expanded by 2.5 million premises via Undertaking Lightning, with 5G companies reaching nearly 200 areas and 4G capability upgraded in 45,000 postcodes for the reason that begin of 2021.