The wholesale division of Virgin Media O2 Business (VMO2), which supplies other UK broadband ISPs and network operators with connectivity services, has today informed their partners that they will not be raising prices for new business or existing services across all products throughout 2024.
This “freeze on back book prices” follows the operator’s announcement in December that new business acquisition rates would not be raised in 2024 at any bandwidth. The decision is said to underpin the company’s “dedication to customers, by reassuring partners that their existing estate will not be subject to any price increases this year.”
The move is said to be recognising the challenging trading climate that many network operators currently face.
John Chester, Wholesale Fixed Director at VMO2 Business, said:
“In comparison to rising prices across the industry, we’re freezing our rates so that we can guarantee our partners a sense of predictability over the coming months. While we face our own cost pressures, our partners need an assurance of price certainty so they can maintain sales volumes with their own resellers and customers. Our market rates are already competitive, and this freeze demonstrates our commitment to long-term partnerships and our belief that price certainty fosters mutual success.”
Just to be clear, this is for Virgin’s wholesale division and not their consumer or SME facing packages. But it remains to be seen whether or not this will precipitate a greater price increase further down the road to compensate for the freeze.