Telefónica has purchased, through Nexfibrethe joint venture it has with Liberty Global and InfraVia in the United Kingdom, the second fiber operator in the country. This is NetomniaSubstantial Group’s fiber network. Founded in 2019, it is expected that when the operation closes, in the third quarter of 2026, it will exceed 34.4 million fiber optic installations and have more than half a million customers.
Nexfibre has paid 2 billion pounds for Netomnia (about 2.3 billion euros). The combination of this network, plus nexfibre and customers of Virgin Media O2’s 2.1 million installations, which nexfibre will upgrade to fibre, will create a large-scale competitor to BT Openreach, with total fiber coverage of around 8 million installations by the end of 2027. Add to this the coverage of Virgin Media O2, jointly owned by Liberty Global and Telefónica, and both networks will add around 20 million installations.
Nexfibre members will pay £1bn in new financing to the company to fund the deal. Infravía will contribute 850 million and Telefónica and Infravia will contribute the remaining 150. Virgin Media O2 agrees to provide traffic to 4.6 million homes, and in return will receive around €1.25 billion in cash and a 15% indirect stake in nexfibre. As part of the deal, Nexfibre will sell Substantial Group’s retail business, including the YouFibre and Brsk brands, to Virgin Media O2, ensuring its customers continue to be served.
In a joint statement, Vincent Levita, Founder and CEO of InfraVia Capital Partners; Mike Fries, President and CEO of Liberty Global; and Marc Murtra, President and CEO of Telefónicahave pointed out that «al By joining forces, we are creating a large-scale, financially secure wholesale fiber optic competitor to BT Openreach, which will improve competition, strengthen the UK’s digital infrastructure and offer more choice and quality to consumers and businesses. This deal unlocks £3.5 billion in international investment and reflects our shared confidence in the UK as a highly attractive market for long-term investment, supported by the Government’s economic policies. We are committed to accelerating fiber optic coverage and helping to ensure the UK remains competitive and ready for the future«.
Jeremy Chelot, CEO de Substantial Grouphas also commented that «this Historic transaction with nexfibre represents the natural evolution of the fiber optics market in the UK. Consolidation was inevitable, and this deal creates the scalable and sustainable platform needed to drive true wholesale competition. Importantly, our retail brand, YouFibre, will remain post-closure, ensuring our customers continue to receive the same trusted service they know today, while benefiting from the financial strength and infrastructure scale that this combination offers. It’s about building a stronger future for fiber optics in the UK«.
