Business · Companies · 2 hrs ago
VMO2 pauses UK fibre expansion amid regulator opposition to Netomnia deal
VMO2 is pausing parts of its UK network investment as the competition regulator opposes its planned purchase of Netomnia.
VMO2 is a major UK telecom company jointly owned by Telefónica and Liberty Global.
The UK Competition and Markets Authority has said it opposes the deal, which would bring alternative fibre operator Netomnia into VMO2 and its partner Nextfibre.
The company will stop building fibre beyond its current coverage and use BT's Openreach network to serve customers outside that area.
It will also pause work to replace its cable network with full fibre connections to homes.
The decision comes as VMO2 faces about £22 billion in debt and concerns from creditors, while intense price competition puts pressure on its finances.
The regulator's stance contrasts with its expected approval of BT's planned purchase of broadband provider TalkTalk, a deal that would strengthen the market leader.
VMO2 has announced plans to cut annual investment by £600 million, while its two shareholders are considering reducing their support.
VMO2 has paused new fibre-network deployments beyond its current coverage and stopped upgrading its cable network to full fibre.
The UK telecoms company said it would use BT’s OpenReach network to serve new customers outside its fibre footprint.
The moves follow opposition from the UK Competition and Markets Authority to VMO2’s proposed purchase of fibre operator Netomnia.
VMO2 also faces financial pressure, including debt of about £22 billion and concerns among creditors about competition and its ability to service that debt.
The company has announced plans to cut annual investment by £600 million.
- Who
- VMO2, a UK telecoms company jointly owned by Telefónica and Liberty Global, and the UK Competition and Markets Authority.
- What
- VMO2 has paused fibre expansion and cable-network upgrades. It will use BT’s OpenReach network for customers outside its fibre footprint.
- When
- The decisions were reported on 30 October 2026. The CMA had opposed the Netomnia purchase in recent weeks.
- Where
- The United Kingdom.
- Why
- VMO2’s move responds to the CMA’s opposition to its proposed Netomnia purchase and to its difficult financial position.
VMO2
Competition and Markets Authority
Netomnia deal
VMO2
VMO2 and its partner Nextfibre seek to buy Netomnia, which VMO2 says would strengthen a nationwide competitor to BT.
Competition and Markets Authority
The CMA has announced its opposition to the proposed purchase.
Regulatory treatment
VMO2
VMO2’s planned purchase faces a threatened veto.
Competition and Markets Authority
The article says the CMA is expected to approve BT’s proposed purchase of TalkTalk while opposing VMO2’s deal.
The price of VMO2’s safest debt was near its nominal value.
VMO2 bonds faced a sell-off as investors worried about competition and the company’s leverage.
The CMA showed opposition to VMO2 and Nextfibre completing the purchase of Netomnia.
VMO2’s decision to pause fibre deployments and cable-network upgrades was reported.
- VMO2 ownership
- 50% Telefónica and 50% Liberty Global
- Netomnia deal
- Proposed purchase by VMO2 and its partner Nextfibre
- Debt
- About £22 billion
- Investment cuts
- £600 million annually
- Alternative network
- BT’s OpenReach for customers outside VMO2’s fibre footprint