Plans to spin-off Virgin Media O2’s fixed network in the UK have been scrapped.
In an interview with Reuters Chief Executive Marc Murtra clarified comments made during an analyst call when he said “plan is not on pause”.
Last year, Virgin Media O2, which is jointly held by Telefonica and Liberty Global said it would spin off its fixed network into a subsidiary called NetCo.
Part of the plan would have seen Virgin Media migrate all of its customers to fibre.
Virgin Media itself has navigated a tough trading environment to end Q2 with 5.7 million customers, a 51,000 reduction on the previous quarter.
Broadband connections fell from to 5,738,800 from 5,811,200 in 2024.
However, monthly fixed ARPU grew by 3.2% quarter-on-quarter, benefitting from a focus on value retention and the annual price increases. ARPU remains stable year-on-year.
“We are carefully balancing volume and value through a multi-brand strategy in both fixed and mobile, underpinned by a continued improvement in customer service and one of the country’s best loyalty programmes with Priority from O2, said Lutz Schüler, CEO of Virgin Media O2.
A customer turnaround strategy is already seeing dividends with a fall in the number of customer complaints.
