Virgin Media O2 calls for UK net neutrality reform to boost 5G and AI
July 22, 2026 12.36 Europe/London By Julian Clover


Virgin Media O2 is urging the UK Government to overhaul net neutrality rules, arguing that the current regulatory framework is preventing innovation, limiting investment in 5G networks and restricting the development of AI-enabled services.

The operator has published a report by Stephen Howard of Communications Chambers claiming the decade-old rules, which require internet providers to treat all traffic equally, no longer reflect modern network capabilities or consumer expectations.

According to the report, reform could unlock hundreds of millions of pounds in economic value by allowing operators to offer new services based on traffic prioritisation, while supporting further private investment in mobile infrastructure.

Virgin Media O2 argues the current rules prevent operators from giving priority to time-sensitive applications during periods of network congestion, citing examples including payment terminals used by small businesses, navigation services, ride-hailing apps and electric vehicle charging. The report also argues that future “agentic AI” applications may require greater flexibility to prioritise critical network traffic.

Lutz Schüler, CEO of Virgin Media O2, said current regulations prevent operators from improving customer experiences in situations where prioritisation would be beneficial, adding that reform would help deliver the UK’s 5G ambitions while encouraging further investment.

The report also argues that countries with more flexible regulatory frameworks could become more attractive locations for developers creating new 5G and AI-enabled services.

Virgin Media O2 said it is investing around £700 million in its mobile network this year as part of a wider programme to improve coverage, reliability and capacity, while forecasting double-digit annual growth in network demand over the next three years.

The debate comes as regulators and policymakers across Europe continue to examine whether existing open internet rules remain appropriate as 5G standalone networks, network slicing and AI-driven services become more widespread. Telecom operators have increasingly argued that greater flexibility is needed to support new commercial services, while digital rights groups have consistently warned that weakening net neutrality protections could undermine the open internet.