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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/p>\n
Telef\u00f3nica will consider further takeovers of UK broadband providers in a bid to strengthen Virgin Media O2 and challenge the dominance of BT\u2019s Openreach, its chief has said.<\/p>\n
\u201cAbsolutely, if the deal is right, it is the more efficient and effective way\u201d of expanding its fibre networks, Marc Murtra told the FT at the Mobile World Congress in Barcelona last week.<\/p>\n
Telef\u00f3nica<\/a> is doubling down on the UK as one of its four key markets alongside Spain, Germany and Brazil as part of the executive chair\u2019s effort to refocus the group away from Latin America. <\/p>\n The Spanish group \u2014 which owns a 50 per cent stake in Virgin Media O2 \u2014 last month made the first move in the long-expected consolidation of the UK\u2019s \u201caltnet\u201d sector, with the agreement of a \u00a32bn deal for broadband rival Netomnia<\/a>. <\/p>\n The deal will be done through Nexfibre \u2014 a fibre broadband joint venture also owned by fellow VMO2 shareholder Liberty Global and InfraVia Capital \u2014 which hosts thousands of VMO2 broadband customers on its network. <\/p>\n The upgraded Nexfibre will cover 8mn UK homes and give VMO2<\/a> access to about 20mn premises. By comparison, BT\u2019s Openreach covers more than 30mn homes, 22mn of which have full fibre.<\/p>\n Murtra said: \u201cWe must help VMO2 to build all the assets and the capacities to offer a best-in-class service in range and in quality. And if BT has the best-in-class service, that is where we need to be.\u201d <\/p>\n Many altnets \u2014 dozens of small fibre networks that have lured customers from BT and VMO2 with cheaper broadband offerings \u2014 are now struggling under heavy debt burdens and lower than expected uptake.\u00a0<\/p>\n Analysts have long expected that Telef\u00f3nica, Liberty Global and InfraVia will acquire rivals, use Nexfibre\u2019s network to offer superfast broadband to more VMO2 customers and sign wholesale deals with other providers. <\/p>\n VodafoneThree is currently in talks to offer broadband services via both VMO2\u2019s fibre infrastructure and the Nexfibre network, as part of a push to double its high-speed internet customers<\/a> by 2034, according to people familiar with the matter. The Times first reported details of the talks.<\/p>\n VodafoneThree said: \u201cWe\u2019re always exploring opportunities to bring even greater connectivity to our customers.\u201d VMO2 declined to comment. <\/p>\n The highly competitive UK market has taken a toll on Telef\u00f3nica, which booked a \u20ac585mn non-cash impairment charge on VMO2 in its 2025 results.<\/p>\n