Virgin Media O2

VMED O2 UK Limited,[1] trading as Virgin Media O2, is a British mass media and telecommunications company based in Reading, Berkshire, England. The company was formed in June 2021 as a 50–50 joint venture between Liberty Global and Telefónica through the merger of their respective Virgin Media and O2 UK businesses, after approval by the Competition and Markets Authority.[2][3]

O2 UK is the largest mobile network in the United Kingdom by customer base, providing 5G, 4G, 3G (until late 2025), and 2G services, and Virgin Media is the main cable provider in the UK, providing cable (HFC) and fibre-to-the-premises broadband, cable television (Virgin TV

History

Origins

O2 and acquisition by Telefónica

O2 UK was formed in 1983 as Telecom Securicor Cellular Radio Limited,[4] a joint venture between British Telecom (BT) (60%) and Securicor (40%). In 1985, it launched Cellnet, which alongside Vodafone was one of the two original mobile networks in the UK. BT later acquired Securicor's share, and rebranded the network as BT Cellnet.[5] In 2001, British Telecom announced it would spin off its BT Wireless division, which included BT Cellnet, as mmO2 plc (later O2 plc), and introduced the O2 brand ahead of the demerger.[6] The demerger was completed later that year, and in 2002, BT Cellnet was rebranded O2.[7] O2 plc was acquired by Spanish telecoms firm Telefónica in 2006.

NTL:Telewest, Virgin Mobile and Virgin.net

In March 2006, cable telecommunications firms NTL and Telewest merged, having been in discussions since 2003, forming NTL:Telewest. In 2004, NTL had acquired ADSL and dial-up provider Virgin.net.[8] In April 2006, NTL:Telewest announced a £962 million offer to acquire Virgin Mobile UK, which Richard Branson largely accepted via a mix of cash and shares, becoming the largest shareholder with a 10.7% stake.[9] The acquisition was completed in June 2006, creating the UK's first "quadruple play" telecommunications company offering television, internet, landline, and mobile phone services.[10][11][12]

O2 and acquisition by Telefónica

NTL:Telewest, Virgin Mobile and Virgin.net

Merger of Virgin Media and O2 UK

In May 2020, it was reported that Telefónica and Liberty Global were in talks to merge their respective O2 and Virgin Media businesses in the UK.[17] The merger was completed on 1 June 2021, with Liberty Global and Telefónica each holding a 50% stake in Virgin Media O2, the new holding company for the businesses. This represented the largest ever UK telecoms deal, and the biggest UK merger in a decade.[18] The deal made, valued Virgin Media as being worth more than O2, however Liberty Global agreed to pay a £2.5 billion equalisation payment to Telefónica, in part due to Virgin Media's debt level. Recapitalisations, were expected to result in both Liberty Global and Telefónica generating net proceeds from the venture.[19]

Post-merger

In October 2021, the company introduced a package of complimentary benefits known as 'Volt' for households with Virgin Media broadband who have at least one O2 Pay Monthly plan, applicable to both new and existing customers.[20][21][22] These include:

Virgin Media O2 also extended access to O2 Priority in November 2021, providing exclusive perks, ticket presales, and experiences previously exclusive to O2 customers, to Virgin Media customers, allowing them full access to the O2 Priority app.[27]

On 24 July 2023, it was announced that Virgin Media O2 would cut up to 2,000 members of staff by the end of 2023.[28] The figure included 800 job reductions that had already been announced and followed similar headcount reductions made by competitors.[29]

trade name	Virgin Media O2
type	Joint venture
industry	Mass media Telecommunications
founded	June 1, 2021
location	Reading, Berkshire, England
area served	United Kingdom
key people	Lutz Schüler (CEO)
owners	Liberty Global (50%) Telefónica (50%)
subsid	O2 UK Virgin Media Virgin Media Business
website	https://www.virginmediao2.co.uk

History

Origins

O2 and acquisition by Telefónica

NTL:Telewest, Virgin Mobile and Virgin.net

O2 and acquisition by Telefónica

NTL:Telewest, Virgin Mobile and Virgin.net

Merger of Virgin Media and O2 UK

Post-merger

Corporate affairs

Controversies

External links

References