Two companies are merging their businesses in the UK to form a 50:50 joint venture. Virgin Media and O2 will create an integrated communications provider with over 46 million video. The joint venture will also accelerate the adoption of converged fixed-mobile services to Virgin Media’s and O2’s existing business customers and offer new services using both companies’ digital skills.
Broadband network and entertainment services
Two companies also announced that the fully converged platform will have the scale to innovate in the changing digital landscape, investing £10 billion in the UK over the next five years. Telefonica Chief Executive Officer, Jose Maria Alvarez-Pallete, said,
“Combining O2’s number one mobile business with Virgin Media’s superfast broadband network and entertainment services will be a game-changer in the UK, at a time when demand for connectivity has never been greater or more critical. We are creating a strong competitor with significant scale and financial strength to invest in UK digital infrastructure and give millions of consumer, business and public sector customers more choice and value. This is a proud and exciting moment for our organisations, as we create a leading integrated communications provider in the UK.”
Mike Fries, Chief Executive Officer of Liberty Global, said,
“We couldn’t be more excited about this combination. Virgin Media has redefined broadband and entertainment in the U.K. with lightning fast speeds and the most innovative video platform. And O2 is widely recognized as the most reliable and admired mobile operator in the UK, always putting the customer first. With Virgin Media and O2 together, the future of convergence is here today. We’ve seen the benefit of FMC (fixed-mobile convergence) first-hand in Belgium and the Netherlands. When the power of 5G meets 1 gig broadband, UK consumers and businesses will never look back. We’re committed to this market and are right behind the Government’s digital and connectivity goals.”