O2, Virgin Media merger talks confirmed
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Editor
| 04 May 2020

The parent body of the UK mobile network O2, Telefónica, has confirmed that it has been in talks with Liberty Global with regards to a merger of O2 and the Virgin Media UK cable network.

If it progresses, the deal would see a combination of the UK’s largest network by customers – with mobile virtual network operators (MVNOs) Giffgaff, Sky Mobile, Tesco Mobile and Lycamobile also using O2's network — and the UK’s cable network which Virgin has been upgrading throughout 2020 to offer gigabit broadband. Indeed, Virgin plans to offer gigabit speeds to more than 15 million homes across its network by the end of 2021, delivering half of the UK government’s stated broadband ambition for fibre networks in Britain four years early.

The deal would also give see Virgin’s mobile telephony offer complemented by another operator that had an existing 5G network. In February 2020, O2 released research showing the transformative impact 5G connectivity could have on the UK’s live entertainment industry. the mobile operator predicts that 5G could boost the sector by as much as £2.3 billion over the next 10 years, rejuvenating live experiences with the likes of technology such as virtual and augmented reality, both of which will benefit from faster connectivity.

As news of the proposed deal broke, Telefónica saw its share price rise, considerably, the company is due to announce its next set of quarterly results on 7 May when more details of the proposed move are expected.