Virgin Media is currently in talks about whether to sell the non-cable arm of its broadband network in the UK as part of its strategy to make all of its broadband services high speed.
The telecom giant has long since ditched use of the standalone business Virgin Media National in many areas, which delivers broadband via BT’s copper wire infrastructure. Around 12.5 million homes in the UK are now connected via Virgin Media‘s exclusive fibre optic network. bringing superior fast broadband speeds that start at 50Mbps at the bottom end and reaching up to 125Mbps at the higher end.
However, Virgin Media is looking to sell the arm altogether in order to focus on increasing broadband speeds even further for all of its customers. The sale would include the transfer of more than 130,000 customers, allowing the buyer to significantly enhance its customer base.
BT and BSkyB are among the companies on the cards to buy Virgin Media National, both of which are in the heat of competition over content rights. TalkTalk has also expressed interest in the purchase of additional customers.
Virgin Media National was originally formed from the merger of Virgin and NTL under the brand name of Virgin Media Beyond Cable. Virgin Media group stopped selling the National services in late 2013 as it focused its attention on growing and strengthening its fibre optic network.
Since then it has plugged the ‘gaps’ in its network coverage in the acquisition of other smaller fibre networks, such as Smallworld Fibre in February 2014. This allowed Virgin to offer fibre optic broadband speeds of 100 Mb and cable TV to thousands of homes in the western Scotland and North West England areas.
Although it is not yet decided whether Virgin Media will sell its National broadband arm, the company has issued information packs to all prospective buyers, containing details of the business.