Virgin Media O2 (VMO2) is reportedly nearing a wholesale broadband agreement with BT Group’s Openreach network. According to an October 30, 2026, Financial Times report, the proposed deal would allow Virgin Media O2 to serve new broadband customers in UK areas where its existing network does not reach. The agreement has not yet been officially confirmed.
The proposed VMO2 Openreach wholesale network deal comes as Virgin Media O2 looks for ways to reduce spending, expand its customer reach, and compete more effectively in the UK broadband industry.
Under the proposed wholesale arrangement, Virgin Media O2 could pay to use Openreach’s existing fibre infrastructure to provide broadband services to customers outside its current coverage areas. Instead of constructing new connections in every location, the company could deliver its own broadband packages over another operator’s network, subject to the terms of a final agreement.
Openreach, a subsidiary of BT Group, operates one of the UK’s largest broadband networks. According to information about Openreach’s broadband network, more than 650 service providers use its infrastructure to offer broadband services. This wholesale model allows different companies to sell internet packages using the same underlying network.
For Virgin Media O2, using Openreach’s network could provide a more affordable way to expand its services. Building new fibre connections requires significant investment, while using an established network could help the company enter new areas more quickly.
The reported discussions come as Virgin Media O2 faces strong competition and pressure to manage its spending. During the second quarter of 2026, the company lost 29,900 consumer fixed-line customer relationships, highlighting the challenges facing its broadband business.
Virgin Media O2, jointly owned by Liberty Global and Telefรณnica, reported approximately ยฃ21.9 billion in net third-party debt and lease obligations as of June 30, 2026. According to Virgin Media O2’s second-quarter 2026 financial results, managing borrowing costs and investment remains an important financial consideration for the company.
The October 30 report also indicates that Virgin Media O2 is pausing efforts to upgrade its existing cable broadband infrastructure to full fibre as part of its wider cost-cutting strategy. The reported pause could reduce near-term spending, although the company has not publicly detailed which areas or upgrade projects would be affected.
According to its June 2026 financial results, Virgin Media O2’s broadband services were available to approximately 18.8 million UK homes, including areas served through nexfibre. Around 9 million premises had access to full-fibre connections, while the wider network also included upgraded cable infrastructure capable of delivering gigabit broadband speeds. Full-fibre broadband uses fibre-optic cables to carry data directly to homes and businesses, supporting fast and reliable internet connections.
The potential Openreach agreement comes as a separate ยฃ2 billion acquisition of Netomnia’s parent company, Substantial Group, by nexfibre faces regulatory uncertainty. The UK’s Competition and Markets Authority (CMA) raised provisional concerns about the deal’s impact on wholesale broadband competition in October 2026. According to the CMA’s merger investigation, the review remains open, with a statutory deadline of December 15, 2026. On October 20, nexfibre’s shareholders stated that they had not submitted proposed remedies to address the regulator’s concerns.
For UK broadband customers, the proposed VMO2 Openreach partnership could create more choices in areas where Openreach operates but Virgin Media O2 does not currently offer broadband services. However, customers would only gain access to new packages if the companies finalize an agreement and Virgin Media O2 decides to launch services in their locations. If new packages become available, customers should compare coverage, broadband speeds, contract costs, and service quality before choosing an internet service provider.
However, it remains unclear whether the arrangement would lead to lower broadband prices, faster connections, or new customer packages. These details would depend on the final agreement and how Virgin Media O2 decides to introduce its services.
The proposed agreement could also influence competition in the UK broadband market. Although BT Group and Virgin Media O2 compete for broadband customers, Openreach already provides wholesale network access to numerous internet providers. A deal with Virgin Media O2 would therefore expand this type of commercial relationship between competing broadband businesses. TechBonafide previously reported on BT Group’s fibre and 5G growth, providing background on the expansion of the company’s broadband infrastructure.
As of October 30, 2026, Virgin Media O2 and BT Group have not publicly announced a signed wholesale agreement. Details about wholesale pricing, contract duration, potential service areas, and launch dates remain unavailable.
If completed, the VMO2 Openreach wholesale network deal could help Virgin Media O2 reach more UK households without building entirely new broadband infrastructure in every area. The next important development will be confirmation of the agreement and details of when customers might be able to access services through the Openreach network.
