The new UK joint venture between Liberty Global and Telefónica officially became operational on 1 June, merging the two household names to form Virgin Media O2 (VMO2).
This joint venture has committed to providing a unique choice to consumers and has also promised to boost the UK economy. While, at the moment, the company is not changing any of its current services, later this year it plans to offer seamless broadband, entertainment and mobile services all in one place.
The Liberty Global-Telefónica merger is devoted to investing at least £10bn in the UK over the next five years. This investment will help businesses further contribute to the UK Government’s goals of connectivity, upgrading infrastructure all around the country, creating stiffer competition and providing a wider variety of choices for customers.
The merger instantly makes the new business one of the largest in the UK, with 47 million customers, broadband, mobile, TV and telephone combined, 430 retail stores and 18,000 employees, and combined revenues of £11 billion in 2020.
The Competition and Markets Authority (CMA) examined the agreement in May, conducting an in-depth investigation focused on customer concern regarding possible price increases. However, the CMA reported that no signs of price increases were found.
Lutz Schüler, CEO of VMO2, commented: “With the fastest broadband and most reliable mobile network in the UK today, Virgin Media O2 is the complete package. We are ready to shake up the market and be the competitor the country needs at a time when choice has never been more important. Through investment and innovation in cutting-edge infrastructure and future technology, we will connect more people to the things they love, support communities across the country, help businesses to grow, and power the UK economy. With no limit to our ambition, we’re here to upgrade the UK – and our mission starts today.”