Telefónica and Liberty Global, the co-owners of Virgin Media O2 (VMO2), are reportedly close to finalizing a major £2 billion acquisition of Netomnia, one of the UK’s leading alternative full-fibre broadband network operators, according to sources cited by the Financial Times.
The deal would be executed through Nexfibre, the fibre joint venture co-owned by Telefónica, Liberty Global, and private equity firm InfraVia Capital. Nexfibre already operates a growing full-fibre network across the UK, currently reaching approximately 2.4 million premises.
Netomnia, one of the country’s largest “altnets,” has built its independent fibre infrastructure to around three million premises, serving more than 400,000 customers. Integrating Netomnia’s footprint would significantly expand Nexfibre’s reach. When combined with portions of Virgin Media O2’s existing network, the merged entity could directly cover roughly eight million homes and gain access to approximately 20 million premises through the broader VMO2 ecosystem.
This would position the combined operation as a formidable challenger to market leader BT’s Openreach, which spans over 30 million homes, including about 21 million full-fibre connections, and remains the dominant player in UK broadband infrastructure.
The potential transaction marks a key step in the ongoing wave of consolidation sweeping the UK’s competitive fibre broadband sector. Smaller and mid-sized altnets have faced mounting challenges, including rising construction costs, funding pressures, and intense competition for scale. Industry observers have long anticipated that larger players with deeper pockets would begin absorbing regional or specialist providers to achieve national coverage and operational efficiency.
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Netomnia’s current owners — including investment firms Advencap, DigitalBridge, and Soho Square Capital- have not yet commented publicly on the reported discussions.
Rival altnet CityFibre, backed by Goldman Sachs and one of the UK’s largest wholesale fibre operators, had previously been viewed as a strong contender to acquire Netomnia. However, sources familiar with the matter told the Financial Times that CityFibre is now unlikely to match the Nexfibre-led offer.
For Telefónica and Liberty Global, the acquisition would accelerate their fibre expansion strategy in the UK at a critical time. Both companies are investing heavily to transition from legacy cable and mobile networks toward next-generation full-fibre infrastructure, aiming to strengthen their competitive position against Openreach and support growing demand for high-speed broadband.
Neither Telefónica, Liberty Global, InfraVia Capital, nor Netomnia has officially confirmed the talks or provided further details. A deal, if completed, could be announced in the coming days and would represent one of the largest transactions in the UK’s fibre broadband market to date.
