Highlights
- A Financial Times report said Virgin Media O2 was nearing a deal to use BT's broadband network.
- BT Group shares jumped on the report, which arrived shortly before half-year results.
- Virgin Media O2 is also pursuing an efficiency programme.
BT Group plc (LSE:BT.A) shares surged this month after the Financial Times reported that rival Virgin Media O2 was nearing a deal to use BT's broadband network, a move that would hand Openreach a major new wholesale customer. BT Group is one of the major names among UK Communication Stocks.
For UK households the story matters because it could change how Virgin Media O2 reaches homes beyond its own cable footprint, and for BT shareholders it touches the most valuable part of the group.
What the Openreach Report Says About Virgin Media O2
According to the report carried by Reuters, Virgin Media O2 was in advanced talks to offer broadband over the fibre network built and run by Openreach. Neither company had confirmed terms at the time, and reports of this kind can change before any agreement is signed.
Virgin Media O2 has historically relied on its own cable network and on a separate fibre partnership. Using Openreach would widen t...