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Virgin Media O2 (VMO2) is said to be on the verge of an agreement that would enable it to also use BT’s Openreach network to serve its new customers, and to suspend cable network upgrades. The details have not been confirmed as both companies declined to comment. As the transition takes place for those employed in telecom infrastructure roles in the UK, there remains a practical question: Where is the business going to go next?
Key Highlights / Quick Facts
- Planned upgrades to VMO2’s cable network to fibre are reportedly being shelved.
- It is estimated that the company has about £22bn of debt and its owners are looking for up to £600mn of charges to be reduced.
- From the total number of 19mn homes, only 9mn homes that are serviced by VMO2 have fiber connection.
- Total capital spending for mobile and broadband was £2.1bn in 2025.
- The move to shift 4.6mn homes onto Nexfibre’s network has been deemed to be a likely deadlock with the UK competition watchdog due to a £1.1bn cash injection.
- Proposed arrangements would see VMO2 use Openreach in areas it does not have coverage.
Why the Slowdown Matters
VMO2 has been under pressure over the last few years due to fierce competition from smaller fibre network operators (altnets). According to a source mentioned in the reporting, further investment in the network is not economically viable in the market situation. The deployment of fibre in this type of company can affect the entire supply chain.
What It Could Mean for Contractors
Most exposure is likely to occur with fibre installation contractors and companies building broadband networks for VMO2. Fewer new build programmes typically equate to fewer upgrade crews, fewer civil works packages and less demand for subcontracted labour. This is likely to be felt first by those on short-term contracts in terms of their job security, making it a real concern.
However, there is no indication that it becomes non-existent. Network maintenance tasks are usually ongoing, and VMO2 still has a network to run. Upgrades are not a reason for faults, repairs and customer connections to stop.
Where Opportunities May Shift
In areas served by VMO2’s reliance on Openreach, hiring of fibre broadband engineers might also tilt towards Openreach and its partners. Experience in full fibre installation, splicing and testing can be well transferred to a different employer, and is likely to be transferable to other work types. Other broadband infrastructure initiatives like altnets can still hire, but they’re grappling with funding issues as well.
In the UK, however, there’s no single employer that dominates the telecom job market. Mobile network upgrades, wholesale deals and digital equipment investments in the rest of the market will make up some of the lost activity, but not always when and where individual workers want it.
What Telecom Workers Can Do Now
- Diversify your accreditations. Openreach-style skills, altnets and mobile infrastructure offering skills of the same type will keep options open.
- Track the regulator. The outcome of the competition watchdog’s review of the Nexfibre deal may have an impact on the speed at which VMO2 turns course.
- Keep relationships broad. Those who work for one client are the most vulnerable to a telecom workforce disruption.
- Observe the repair and wholesale aspects of watching. These could be more reliable than new build projects.
Outlook
Consolidation and sharing networks is increasingly the focus of the UK broadband industry, rather than parallel builds. For engineers, it means less duplication of rollouts and still having to connect, maintain, and repair the networks that are still there. The pause is a red flag for some contractors but a green light for others who can be flexible.
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