Telefónica and Liberty Global have plans to acquire UK broadband network, Netomnia, in a deal worth approximately £2BN.
Announced by the FT earlier today, this acquisition will allow the joint Virgin Media O2 Owners to increase their overall customer base, narrowing the gap between them and market leader BT’s Openreach.
This acquisition is expected to support greater network scale and reach for VMO2, however reduces the chance for smaller providers to experience long-term competitiveness and valuable customer growth as the UK broadband market consolidates.
Discussions had previously risen in October 2025 of a potential Netomnia acquisition to be valued around £2BN.
These early talks involved combining Netomnia’s network with VMO2 and Nexfibre, with backing from VMO2’s owners and private equity firm IfraVia Capital.
At the time, Netomnia was reportedly in talks with several other bidders such as CityFibre, the UK’s largest alternative network operator.
As of 2025, VMO2 owned a broadband market share of 30%, 5% behind market leader BT.
By acquiring Netomnia, VMO2 could expand its footprint in the marketspace by investing in a network provider that has frequently targeted disregarded broadband areas across the UK.
Today, this deal is close at hand, with IfraVia Capital joining the owners to acquire the broadband network for roughly £2BN.
InfraVia Capital also owns broadband provider Nexfibre with Telefónica and Liberty Global, making this latest acquisition the latest endeavor in their partnership.
Following this, Netomnia’s fiber network will be brought under one combined set up, with Netomnia currently covering 3 million homes, this will increase the combined fiber network footprint to roughly 8 million.
Furthermore, this acquisition will allow VMO2 to expand its potential customer base to roughly 20 million homes nationwide, just 10 million shy of BT’s coverage.
This would place the competitor in a stronger position to narrow the size gap with BT’s Openreach, further establishing itself as a primary UK broadband provider.
With the deal currently unable to be confirmed publicly, the FT reports that an official announcement may come later this week.
What This Acquisition Will Mean for Customers
By expanding their fiber broadband reach, customers in untargeted areas could gain access to stronger services.
Gaining a larger infrastructure would allow customers more choice in service provider options with competitive pricings.
By integrating Netomnia’s Brsk and YouFibre brands into VMO2’s systems, they can update their service plans, billing, or support arrangements that are more targeted to the customer they are trying to sell to.
This can drive investments in network upgrades, given the combined companies’ ability to scale more effectively when building out fiber infrastructure.
By increasing their fiber coverage, customers will potentially be able to access enhanced service quality and greater accessibility, as well as targeted packages and products to cater to customer needs.
Customers will be able to choose the options that best suit them, regardless of their location, increasing satisfaction.
Who are Netomnia
Founded in 2019, the company is the UK’s second-largest altnet after CityFibre, having 2.8 million fiber premises serviceable and 400,000 fiber connections.
As an alternative network provider, Netomnia installs its own fiber optic infrastructure rather than using legacy copper networks, targeting broadband areas that can be overlooked by the top market competitors.
Having merged with UK broadbrand provider Brsk in 2024, Netomnia now operates as one of the largest full-fiber networks in the UK, reaching 3 million homes and expects to expand coverage to 5 million in 2027.
Despite many network providers facing financial pressure, Netomnia continues to grow and receive significant funding, positioning itself as a leading consolidation candidate.
Broadbrand Providers are Struggling to Retain Customer Base
This acquisition would provide VMO2 with the customer growth it needs, due to the expensive nature of network creation, drops in consumer base can place providers into debt, and pressure investors to back out.
Early fiber buy talks had come in as VMO2 released its third-quarter results, reporting continued loss in fixed and mobile customers.
Being reportedly driven by b2b losses during the quarter, falls in customer numbers weakens revenue growth and increases churn risk, as well as reducing VMO2 position as a strong market competitor.
This acquisition also reflects stress across the altnet sector, as many small providers use debt to build networks, over assuming customer uptake.
Across many UK areas, take-up has been slower than hoped, as competition remains intense, prices are under pressure, and marketing costs are through the roof.
Some have therefore been forced to cut down on operations, offerings, and staff to remain afloat.
Last week, UK altnet CityFibre had reportedly made plans to cut a third of all jobs to help streamline operations, with its current debt sitting at £3.7BN as of 2025.
Furthermore, UK altnet G. Network had entered administration last month after reportedly carrying around £300MN in debt, with a customer base of only 25,000.
Having been sold off to FitzWalter Capital, other buyers were skeptical about acquiring the altnet following reports on the state of its physical infrastructure, having significant damage to its fiber cables and being too costly to mend.
As larger players consolidate, smaller providers may struggle to survive independently, forcing many to sell assets, merge, or exit the market.
This deal is an early sign that the UK fibre market is moving from expansion to consolidation.
