Nexfibre to Overbuild Old Virgin Media O2 Coax Network as Part of Netomnia Acquisition

Key Takeaways

• nexfibre to upgrade 2.1 M VMO2 coax homes.
• Total XGS‑PON footprint could reach 7‑8 M premises.
• VMO2 will pay wholesale fibre access fees.
• Netomnia can roll out one million premises annually.
• VMO2 may become retail arm; nexfibre network owner.

Pulse Analysis

The £2 billion acquisition of Substantial Group (Netomnia) gives nexfibre a unique opportunity to overlay a full‑fibre XGS‑PON network on top of Virgin Media O2’s aging hybrid‑fiber coax (HFC) system. By targeting the 2.1 million homes that currently rely on coax, nexfibre not only expands its own infrastructure but also creates a wholesale‑grade fibre layer that VMO2 can tap via access fees. This approach mirrors the broader industry trend of decoupling retail services from network ownership, allowing the retailer to focus on customer experience while the network operator shoulders construction risk.

From a technical perspective, the rollout will likely blend existing VMO2 ducting with Openreach’s Passive Infrastructure Access (PIA) products, depending on local asset availability. Leveraging Netomnia’s proven capacity to deploy roughly one million premises per year, the combined footprint is projected to hit 6.99 million homes now and could climb to 7‑8 million as new builds progress through 2028‑2029. Such scale not only accelerates the migration from copper and coax to full‑fibre but also strengthens the case for wholesale adoption by other ISPs seeking high‑capacity backhaul without building duplicate networks.

Strategically, the timing aligns with the upcoming Telecoms Access Review slated for April 2026, which will reshape wholesale regulation through 2030. By establishing a robust alternative network before the review’s conclusions, nexfibre positions itself to influence future policy discussions and potentially benefit from a more favourable regulatory environment. Moreover, the likely separation of VMO2’s retail arm from the nexfibre‑owned network could attract third‑party operators, intensifying competition and driving down broadband prices across the UK market.