Nexfibre Cut 2025 UK Full Fibre Target to 2.5m Premises as VMO2 Pause NetCo Plans | ISPreview UK

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Liberty Global has confirmed that sibling nexfibre, which is working alongside UK ISP partner Virgin Media to deploy a new 10Gbps full fibre broadband (FTTP) network across over 5 million premises (c.2.2m have already been built), has scaled back its coverage target for 2025 to 2.5 million premises passed. At the same time, VMO2 “have paused our NetCo plans“.

Just to recap. Nexfibre is the product of a £4.5bn joint venture (here) between Telefónica, Liberty Global and InfraVia Capital Partners, which originally aimed to deploy an open access full fibre network to reach “up to” 7 million UK homes (starting with 5m by 2026) in areas NOT served by Virgin Media’s own network of 16m+ premises (Telefonica and Liberty Global also own Virgin Media).

NOTE: Virgin Media is currently the only ISP on nexfibre’s network via an “exclusive partnership” (here). But giffgaff (here) and other ISPs will be added in the future (here) and Virgin’s own network was also due to open up to wholesale via a new NetCo during H1 2025 (here).

However, the latest results from Virgin Media (VMO2) – published this morning (here) – revealed somewhat of a slowdown in FTTP build at nexfibre, which only added 165,000 premises in Q1 2025. But we had been expecting them, at this stage of the deployment, to start moving a bit faster in order to meet their first overage target (i.e. the change in pace came as a bit of a surprise).

The answer to all this came when Liberty Global published their investment report, which was followed by details from today’s investment call – revealing several key developments. According to the report, Liberty Global are “adjusting nexfibre’s build ambition to 2.5 million cumulative premises (currently at 2.2 million) by year-end 2025, retaining capital discipline in an increasingly irrational altnet environment and remaining opportunistic around M&A” (nexfibre had previously been adding c.1 million premises per year).

In addition, readers may recall that Virgin Media’s parents had been looking to raise an additional investment of £1bn to support the NetCo project (here), which some reports speculated could hand investors up to a 40% stake in the wholesale business. But this too has now also suffered a setback. “We have decided to pause VMO2’s potential NetCo stake sale process to align with our JV partner, but remain opportunistic on both network upgrade and development opportunities,” said Liberty Global’s results.

Since then the CEO of Liberty Global, Mike Fries, has added a little bit of extra colour to these decisions.

Mike Fries said (investor call):

“In the UK, we are confirming today that we have paused our NetCo plans at the VMO2 level in order to align with Telefonica’s announced strategic review. At the same time, nexfibre has updated its plans, and will now target 2.5 million fibre homes by year-end on a cumulative basis.

Let me say first that we pride ourselves on being good partners, and we appreciate and understand Telefonica’s position. Undoubtedly, we [will] have more to say about all of this as the year unfolds. In the meantime, there are multiple ways to continue to strengthen VMO2’s competitive position in the UK. Our services already reach 7 million fibre homes, and for reference, VMO2 achieved record sales and net adds last month on the nexfibre footprint. So stay tuned here.

So anyway, on the bigger issue of NetCo, I would say the following, yes, the market is evolving. And certainly, it would be potentially better to have — to be front and center with our original plans. However, nothing prevents us from entering into strategic dialogue with operators around things like consolidation.

I’ll remind you that the acquisition we did earlier in the year was done by nexfibre and VMO2. So we didn’t have a Netco in that instance. And we still have a very large broadband base. We have an 18 million home network or 16 wholly owned. There are unlikely to be significant developments in the rationalization of AltNets to fibre in this market that we aren’t part of in some way. And I do believe that Telefonica would answer that question similarly, which [means] we will stay opportunistic and we will take action if things are presented to us that require immediate action, where we’ll evaluate those. So that’s where we sit.”

Mike also highlighted how they’ll “stay opportunistic and take action” where logical and said that “we’re not closing any doors”. In addition, none of this has any impact upon Virgin Media’s ongoing effort to upgrade their legacy Hybrid Fibre Coax (HFC) network to FTTP (XGS-PON) by 2028, which is still proceeding and costing around £100 per premises passed (affordable and a necessary enhancement to stay competitive).

On the nexfibre front, the JV partners appear to be responding to pressures that exist in the market and there’s a strong indication that they now view consolidation (i.e. hunting for deals with struggling rival altnets) as being a smarter use of capital than fresh build, particularly given the rising risk of overbuild with some of those same competitors.

However, consolidation tends to be a slow and complex negotiation / process, especially while some altnets continue to have an inflated view of their own value. Time will tell how well they do on this front, particularly with CityFibre also actively looking to secure similar agreements.

The situation does of course place a big question mark over how Virgin Media will proceed now that their own NetCo ambitions appear to be on a sort of pause. Creating a viable wholesale model, without causing serious harm to their own retail base at Virgin Media, remains a particularly difficult challenge.

Potential ISP partners will be looking to be treated fairly (wholesale agreements), which is always a tricky thing to balance vs the desire by some for exclusivity agreements. One benefit of Openreach’s heavily regulated business is that it affords ISPs some protection against unfair practices, and competing with that is a challenge, particularly while so much of VM’s network is still stuck on coax (they’d only wholesale the XGS-PON fibre).

The need to deliver attractive pricing is another difficulty, particularly given Virgin Media’s own retail reputation for hefty post-contract (after discounts) pricing. Alternative networks in this space have been aggressive on price and associated ISPs are often able to offer promises of “no mid-contract price hikes“, which is something that the established giants tend to struggle with. So far, the only ISPs of any note that seem to have committed to the NetCo are those with shared parentage (Virgin Media and giffgaff), which is a problem.

Overall, the suggestion seems to be that a lot of the pressure to pause and take stock has come from Telefonica’s new strategic review, but it may also be a generally prudent thing to do – given the complex market dynamics. But quite what will emerge from all this remains to be seen.

96% of UK Altnets are considering M&A, according to new research from Neos Networks | Total Telecom

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1st MAY 2025 – One of the UK’s foremost business connectivity providers, Neos Networks, has today announced research from 100 Senior Decision Makers at UK-based alternative network providers (Altnets). It reveals that almost all (96%) are considering M&A and partnerships with other service providers as they look for opportunities to survive and expand in the UK’s competitive broadband market.

A competitive landscape

The research, conducted by Censuswide this year, highlights some of the hurdles that many Altnets face. When asked about acquiring customers, 55% said their target customers are ‘locked into preexisting contacts’, a clear indicator of the growing competitive pressure from legacy providers. This was followed by a lack of awareness (47%), with many Altnets facing competition with up to four other providers in regions where they have networks.

Tough economic conditions are also affecting growth strategies with Altnets, with almost half (48%) of those surveyed saying that it has been difficult to access funding over the past year. High interest rates are exacerbating this challenge with 48% of Altnets citing them as the primary reason behind their struggle for funding. Regulatory constraints and strict lending criteria were also cited as significant barriers as Altnets looked to secure financing.

Altnets also face other regulatory challenges, including the knock-on impact of BT’s closure of its copper network as it transitions to full fibre. As part of this modernisation, most Altnets are now under pressure to remove equipment from BT’s exchanges, which are due to start closing in January 2027. They say it will cost them, on average, £1.4mn, according to our research.

The path forward

As Altnets look for a path forward, almost all (98%) said they expect to move beyond just offering traditional residential broadband to broaden their services and appeal. This was also cited as the number one long-term ambition for Altnets in the survey.

  • 46% say they plan to launch smart home technology
  • 43% say they will offer enterprise connectivity
  • 42% say they will launch security solutions and packages
  • 35% say will start offering multi-service solutions – i.e. TV and entertainment

55% of the Altnets we surveyed say that improving customer satisfaction is their primary goal for the next few years, beating out other, more revenue-critical operations such as increasing customer subscriptions and driving operational efficiencies.

When asked what technologies they were using to help them differentiate themselves from their competitors, the majority of respondents said they were deploying Software-Defined Networking and Network Function Virtualisation (53%). 5G Fixed Wireless Access (39%), and AI/ML enabled BSS/BSS automation also ranked highly.  

Lee Myall, CEO at Neos Networks said: “Altnets have played a pivotal role in reshaping the UK’s connectivity landscape, driving the expansion of full-fibre networks and challenging established incumbents. However, the industry now stands at a crucial crossroads. Heightened competition, financial pressures, and shifting regulatory frameworks mean that Altnets must evolve rapidly to secure their long-term future.

“Our research highlights that Altnets are exploring a variety of strategies – from mergers and acquisitions to strategic partnerships and service diversification – to strengthen their market position and pave the way for sustainable growth.”

 

ENDS

Methodology

Neos Networks commissioned Censuswide to survey 100 Senior Decision Makers at UK-based Altnets. The survey was commissioned in January 2025.

About Neos Networks

Neos Networks has the UK’s largest business-dedicated network. With over 600 points of presence and 90 data centres nationwide, Neos provides high-capacity critical connectivity for businesses, from telecoms and energy to banking and emergency services.

Agile and customer-focused with almost limitless scale, Neos enables emerging technologies like AI, 5G and IoT, making connectivity work for Britain. 

For more information please visit: https://neosnetworks.com

TikTok fined €350m over data transfer to China  | Total Telecom

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News  

TikTok has been fined €530 million by the Irish Data Protection Commission (DPC) following an investigation into the company’s handling of European user data 

The inquiry found TikTok unlawfully transferred personal data from European Economic Area (EEA) users to China and failed to meet transparency obligations under the EU’s General Data Protection Regulation (GDPR). 

Based in Dublin, TikTok falls under the Irish DPC’s oversight in the EU. Regulators found that it failed to ensure that data accessed by staff in China met EU-level privacy protections. The DPC also found TikTok failed to properly assess the risks posed by Chinese laws, which differ significantly from EU privacy standards.  

“The GDPR requires that the high level of protection provided within the European Union continues where personal data is transferred to other countries,” said DPC Deputy Commissioner Graham Doyle in a press release. 

“TikTok’s personal data transfers to China infringed the GDPR because TikTok failed to verify, guarantee and demonstrate that the personal data of EEA users, remotely accessed by staff in China, was afforded a level of protection essentially equivalent to that guaranteed within the EU,” he continued. 

TikTok has been given six months to bring its data processing up to standard. If it fails to do so, the company could face a suspension of all data transfers to China. 

The company admitted last month that a limited amount of EEA user data had been stored on servers in China, contradicting earlier claims made during the inquiry. The company says the data has since been deleted, but the DPC is considering whether further enforcement action is warranted. 

The ruling adds to growing international pressure on TikTok, which is facing potential bans or forced divestments in the US and restrictions on government devices in multiple countries due to concerns related to its Chinese ownership. 

The DPC will publish the full decision and related documents in the coming weeks. 

Keep up to date with the latest international telecoms news by subscribing to our newsletter 

Also in the news:
Diversifying the UK’s data centre landscape: a path to economic growth
UK government’s data centre strategy drives discussion at Connected North
Data centres in the news this week 

Telco executives convicted in NHS bribery scandal  | Total Telecom

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News 

This week, four men have been convicted in connection with a corruption and bribery scandal involving multimillion-pound telecoms contracts awarded to Scottish health boards 

The High Court in Glasgow found Adam Sharoudi and Gavin Brown, directors of Scottish telco Oricom, guilty of securing over £6 million in NHS contracts through fraud.  

The company, founded in Ayrshire in 2008, provided telecoms and video conferencing equipment to various Scottish NHS trusts between 2010 and 2017.   

An investigation by NHS Scotland Counter Fraud Services revealed that commercially sensitive procurement information was leaked to Oricom by NHS insiders Alan Hush, a former telecoms manager, and Gavin Cox, head of IT infrastructure at NHS Lanarkshire. In exchange, Hush and Cox received cash and gifts worth totalling nearly  £90,000. 

The court heard that one contract awarded to Oricom without proper tendering was worth over £3.1 million.  

Prosecutors argued that Oricom was given an unfair commercial advantage, undermining procurement integrity and costing taxpayers millions. 

Lord Arthurson, presiding over the case, called the actions “a coldly calculated and criminal betrayal of the welfare state,” adding that the four men should expect significant prison sentences.  

All four men remain in custody before sentencing next month. 

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Also in the news:
Diversifying the UK’s data centre landscape: a path to economic growth
UK government’s data centre strategy drives discussion at Connected North
Data centres in the news this week 

Intelsat and AXESS Networks extend partnership to boost satellite coverage across the Americas  | Total Telecom

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News 

Intelsat has partnered with AXESS Networks, a Hispasat subsidiary, to expand satellite service capabilities across the Americas 

The collaboration combines the satellite infrastructure and assets of both Intelsat and Hispasat to ensure reliable coverage throughout the Americas region. The two companies aim to offer quality, multi-satellite connectivity to enterprise and telecom customers. 

According to the companies, the agreement will improve the customer experience by delivering robust, scalable services for a wide range of communication needs. The partnership forms part of a broader renewal agreement with AXESS.  

The partnership comes amid a surge in demand for reliable and scalable connectivity solutions, particularly in hard-to-reach rural areas and increasingly digitalised urban environments. 

“Our collaboration with Intelsat underscores our commitment to delivering world-class satellite solutions. We are proud to work together to enhance the customer experience and provide top-tier connectivity to our clients,” said General Manager AXESS EMEA¸ Guido Neumann in a press release. 

“Our quality of service speaks for itself in this expanded partnership with AXESS. This agreement reaffirms our commitment to delivering seamless, reliable solutions just as we do today and into the future,” echoed Rhys Morgan, RVP EMEA Sales at Intelsat. 

Hispasat acquired AXESS Networks back in 2022 for an undisclosed sum. The deal, Hispasat said, allows its “2020-25 Strategic Plan to be accelerated, aiming to transform the company into a satellite solutions and services provider.” 

Keep up to date with the latest international telecoms news by subscribing to our newsletter 

Also in the news:
Diversifying the UK’s data centre landscape: a path to economic growth
UK government’s data centre strategy drives discussion at Connected North
Data centres in the news this week 

Netomnia Raise Extra £160m and Target 5 Million UK Premises for FTTP Broadband | ISPreview UK

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Alternative network operator Netomnia (Brsk and ISP YouFibre), which has now expanded their 10Gbps capable Fibre-to-the-Premises (FTTP) broadband network to cover 2.4 million UK premises RFS (up from 2.2m end of Feb 2025) and connected 310,000 customers (up from 270k), has boosted their coverage target to 5 million premises and raised £160m in debt funding.

Just to recap. Netomnia is currently in the process of completing their merger with Brsk (here) and had previously been aiming to expand their full fibre (FTTP) broadband network to reach 3 million premises by the end of 2025 (inc. 1 million customers by 2028). The service is currently available across parts of over 90 UK cities and towns.

NOTE: The combined group of Netomnia and Brsk is now backed by around £1.5bn of equity and debt from investors Advencap, DigitalBridge, and Soho Square Capital.

The good news today is that the network operator has raised another £160 million in junior debt from I Squared Capital and Palistar Capital. This investment builds on an £880 million senior debt commitment, bringing total funding support to £1.04 billion.

The move helps to support Netomnia’s current annual build rate of 1 million premises, which also means that they’re now increasing their target from 3 million premises serviceable by the end of 2025 to 5 million by the end of 2027. The group is also expected to achieve positive EBITDA in 2025.

Jeremy Chelot, Group CEO of Netomnia, YouFibre, and brsk, said:

“This £160 million junior debt facility represents resounding market confidence in our execution and financial discipline. As we connect thousands more homes and businesses with the UK’s most powerful internet, this funding ensures we can sustain our growth trajectory while delivering strong, long-term value.”

Mohammed El Gazzar, Senior Partner, I Squared Capital, said:

“Netomnia has firmly established itself as one of the UK’s leading alternative broadband providers through a unique combination of rapid deployment, operational excellence, and cost efficiency. With one of the lowest build costs in the market, a highly experienced management team, and strong backing from premier sponsors, Netomnia is well positioned to continue its impressive growth trajectory. As part of our European strategy, we are pleased to support the company’s next phase of expansion, helping extend reliable, affordable fibre connectivity to millions more homes across the UK.”

Breaking news.. more to follow..

Vodafone expands role in UK smart meter network upgrade | Total Telecom

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Press Release

Vodafone to deliver fixed connectivity as part of national smart metering transformation

Vodafone has announced its expanded role in the UK’s smart metering programme, working with the Data Communications Company (DCC) to enhance the nation’s energy infrastructure. This builds on their initial partnership announcement, where Vodafone committed to providing 2G and 4G mobile connectivity for smart meters, enabling the transmission of data from individual meters to the central system.

As part of a newly awarded contract, Vodafone will now provide fixed connectivity between energy suppliers and the Data Service Platform (DSP) — the secure system at the heart of the smart meter network.

The DSP, operated by DCC on behalf of the industry, acts as the central intelligence for smart metering, receiving data from meters and enabling energy companies to access that information as needed. Vodafone already supplies the 2G and 4G mobile connectivity that allows data to travel from individual meters to the DSP. With this new scope, the company will now deliver the fixed-line connectivity that links energy providers — directly to the platform.

“Smart meters are central to Britain’s journey toward a more sustainable, efficient energy system — and the Data Service Platform is the intelligence behind it all said Nick Gliddon, CEO, Vodafone Business UK. At Vodafone, we’re proud to expand our role in this national infrastructure by providing the fixed connectivity between energy providers and the DSP. This builds on our existing delivery of mobile connectivity, helping ensure that critical data flows securely and reliably across the ecosystem.

Chris Lovatt, DCC Chief Executive Officer said, “Smart metering is central to Britain’s energy transition to net zero and the DSP is fundamental to the smart system. As part of the transition, it is crucial that we drive the best possible outcomes for our customers and energy consumers. The enhanced design and contracts delivered by this new DSP platform will enable DCC to deliver better value for money, while driving flexibility, stability and security.”

Vodafone joins a collaborative effort that includes IBM, who will build a new cloud-based DSP platform, and CGI, the system integrator and incumbent DSP provider. Together, these organisations are supporting the next phase of the UK’s smart metering journey — one focused on security, scalability, and sustainability.

The project marks a significant step forward in modernising the UK’s energy data infrastructure, enabling smarter energy use and supporting the nation’s net zero ambitions.

Join the telecoms ecosystem in discussion at Connected Britain 2025the UK’s leading digital economy event

Also in the news:
Germany appoints first ever digital minister
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BT opens new flagship Manchester office

Virgin Media UK TV Customers Gifted 3 Months Free Fit at Home App | ISPreview UK

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Customers of broadband ISP Virgin Media, specifically those who take their Pay TV services, can now gain exclusive free access to 3 months of Fit at Home, a workout (fitness) app that attempts to cater for all kinds of people. The service usually costs an extra £10 per month.

Customers who sign-up to the app before 30th June 2025 will thus save £30 and gain access to 500 professionally created and guided workouts – “no gym membership required” (to be fair, this really isn’t quite the same as a gym membership).

To subscribe, Virgin TV 360 and Stream customers need to head to the Apps area on their TV and scan the QR code presented when they select the ‘Fit at Home’ app. David Bouchier, Chief TV and Entertainment Officer at Virgin Media, said: “From the comfort of their own home, customers will benefit from professionally led workouts, physiotherapy programs and so much more, without the need to shell out on a gym membership.”

Wireless and Full Fibre Broadband ISP Orbital Net Appoints New CFO | ISPreview UK

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Independent Kent-based UK ISP Orbital Net (Orbital Internet Group), which runs the Vfast sub-brand that sells packages to homes via a mix of fixed wireless (FWA) and full fibre (FTTP) broadband networks, has announced that they’ve appointed John Slingsby as their new Chief Financial Officer (CFO).

John brings plenty of financial and leadership experience from his previous roles at companies such as Siemens, The AA, Addison Lee, and most recently Zeelo. The hope is that he will bring a “fresh perspective” and further support their “ambitious growth objectives“, which were recently fuelled by the acquisition of ClubWifi (here).

We’re excited to welcome John to the company as CFO. Beyond his financial expertise, John brings a collaborative and people-centred approach that aligns perfectly with our values and culture. His clarity, discipline, and financial acumen will be a tremendous asset to all of us,” said Ben Doherty, CEO of Orbital Internet Group.

Virgin Media O2 Suffers Fall in UK Broadband Customers as FTTP Build Slows | ISPreview UK

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The latest Q1 2025 results from Virgin Media and O2 have today been released, which saw their gigabit broadband network grow by 165,000 premises in the quarter to cover 18.4 million UK homes and related customers suffer a sharp fall to total 5,694,900 (down by -44k in Q1 vs +12k in Q4 2025) “due to heavy discounting in the market“. The operator’s outdoor 5G mobile cover also increased to 77%.

The new results confirm that the combined Virgin Media and nexfibre fixed broadband network now reaches a total of 18,420,900 Homes Serviceable (up from 18,255,600 in Q4) across the UK and the vast majority of the new quarterly build is from nexfibre’s full fibre FTTP lines (this network alone now accounts for around 2.2 million premises of the total).

NOTE: Virgin Media is the only major ISP on nexfibre’s network via an “exclusive partnership” (here). More ISPs will be added in the future (here) and Virgin’s own network is expected to open up to wholesale via NetCo in H1 2025 (here).

The results reveal that a total of around 6.8 million Virgin Media and nexfibre premises (footprint) are now covered by FTTP lines (XGS-PON and RFOG), which is up from 6.4m in Q4 2024. But this also factors in Virgin’s ongoing upgrade of existing Hybrid Fibre Coax (HFC) areas to FTTP under Project Mustang (i.e. aiming to convert all of Virgin’s existing HFC and RFOG lines to XGS-PON by 2028).

Finally, a tiny portion of the quarterly nexfibre build figures (shown below) will also include a bit of infill build from Virgin Media itself, which usually takes place on existing new build homes sites (i.e. the legacy of long contracts and housing development projects). But otherwise, we note that the Q1 pace of build appears to have slowed quite considerably vs previous quarters (note: Q4 2024 included the impact of Upp’s merger), which was unexpected.

Nexfibre Rollout Progress
Q1 2025 = 165,000 Premises
Q4 2024 = 485,500 Premises
Q3 2024 = 281,100 Premises
Q2 2024 = 295,300 Premises
Q1 2024 = 194,000 Premises
Q4 2023 = c.299,000 Premises
Q3 2023 = 250,800 Premises
Q2 2023 = 175,500 Premises
Q1 2023 = 107,800 Premises
Q4 2022 = 24,000 Premises

Just for context. Telefónica, Liberty Global and InfraVia Capital Partners established a new £4.5bn joint venture called nexfibre in 2022 (here), which aims to deploy an open access full fibre (FTTP) network to reach “up to” 7 million UK homes (starting with 5m by 2026) in areas NOT served by Virgin Media’s own network of 16m+ premises. But Virgin Media, which shares some of the same parentage, is currently the only major ISP on this network (here).

Elsewhere, Virgin Media has long stopped giving any solid figures for their Pay TV (video) base, which often happens when a base is in decline.

VMO2 Q1 2025 UK Customer (Connection) Figures
5,694,900 Fixed Broadband – (down from 5,738,900 in Q4)
45,685,000 Mobile inc. Wholesale – (down from 45,700,700)

The latest results also state that outdoor 5G mobile coverage is now available to 77% of the UK population (up strongly from 75% in Q4 2024 and 68% in Q3) and we note that their mobile base has shrunk a little bit. On the financial front, VMO2 reported total revenue of £2,480.1m in Q1 2025, which is down from £2,716.2m last quarter.

Lutz Schüler, CEO of VMO2, said:

“We have started the year on track with guidance delivering growth in core revenues and profitability. Against a tougher Q1 trading environment we have kept our focus on retaining customer value through fast and reliable connectivity coupled with disciplined pricing and improved service.

Our investments in networks and services are continuing to position us well for the future. We have seen a further improvement in customer service as our turnaround strategy shows green shoots, with lower complaints and higher satisfaction. On the mobile side, we’ve expanded 5G to reach three quarters of the UK population while improving network quality in key locations, and the expected acquisition of spectrum from Vodafone-Three will further bolster our position. On fixed, our combined full fibre footprint continues to grow and now approaches seven million premises, while we also start trials of giffgaff broadband to increase our reach in the market.

We remain focused and on course to deliver our full year guidance as we build on the foundations laid last year to return to growth in 2025.”

Sadly, the latest results didn’t include much in the way of any useful updates on Virgin Media’s plans for opening their existing fixed broadband network up to wholesale via their new NetCo (originally anticipated for the first half of 2025). But it is worth remembering that giffgaff recently confirmed their intention to trial and launch a range of full fibre (FTTP) home broadband packages via nexfibre and Virgin Media’s national networks (here).

In terms of those customer losses, this has likely been driven by the impact of their recent annual mid-contract price hikes, as well as competition from the new generation of often cheaper alternative networks. But so far Virgin Media has done a modest job of staying on top of such things, although the sharp fall in broadband customers during Q1 will no doubt cause some concern.