Virgin Media O2 Nears Deal to Use BT's Broadband Network

✦ Meridian Analysis

Virgin Media O2 is close to an agreement that would give it access to BT’s broadband network, after BT scrapped plans to upgrade its own infrastructure. The arrangement forms part of the company's efforts to cut costs. The mechanics resemble a network‑sharing or wholesale‑access transaction, where the buyer does not take ownership of the underlying infrastructure but obtains rights to use it under commercial terms that would be negotiated separately from any equity purchase. Key points to monitor include the final terms of the access agreement – pricing, duration and any capacity caps were not disclosed – as well as the timetable for regulatory clearance and the identity of any financial advisers involved.

The Meridian Weekly