Virgin Media is considering giving rival UK operators access to its cable network for the first time, reports the Daily Telegraph.
Parent company Liberty Global is reviewing whether to rent cable broadband network access to providers such as Sky, who currently offer services using Openreach infrastructure. If the plans go ahead, Openreach would face broadband infrastructure market competition for the first time.
Liberty Global is considering this radical shift in strategy from only selling services to consumers as it looks to compete with full-fibre network investments being made by Openreach and other infrastructure providers such as CityFibre. Virgin has so far been able to charge consumers higher prices for cable broadband, which is faster and more reliable that Openreach copper phone lines. However, it is concerned that the fibre network investments by rivals will remove its technological advantage, threatening its market share and ability to charge a premium for cable broadband services.
Liberty Global is understood to be reviewing whether it would be better to develop a wholesale business with lower margins but a larger market share. Virgin's cable network covers around 50 percent of the UK or 14.4 million homes, mainly in urban areas. Comcast-owned Sky is understood to have asked Virgin Media for access to its network alongside Openreach, and one option being considered is a wholesale deal with Sky only.
Liberty Global already has experience with wholesale cable access through its Belgian subsidiary Telenet and has just launched such an offer through its Dutch affiliate VodafoneZiggo.
