Major changes at Virgin Media O2 as broadband competition heats up

One of Britain's biggest broadband and mobile companies is reshaping its business. On 3 November, Virgin Media O2 set out a transformation plan alongside its results for July to September 2026. The headline changes Cost savings: the company is targeting around £800 million a year in savings by 2029, with roughly £400 million expected in 2027 and £600 million in 2028. About £300 million of that is due to come from reorganising the business, and press reports say thousands of mainly back-office jobs will go. Fibre plans scaled back: upgrades of the Virgin Media cable network to full fibre will stop beyond work already committed. Instead, a cheaper upgrade is planned to bring speeds of up to 2Gbps to most of the existing cable network in 2027. More automation: the company plans greater use of AI tools and online channels, and has already introduced an automated voice assistant to handle broadband fault calls. Why is this happening? The results show the pressure the business is under. Virgin Media O2 had a net loss of 23,300 home broadband and phone customers in the quarter, although that was 9,400 fewer than a year earlier. Average monthly revenue per home broadband customer fell 5% to £45.83, which the company linked to strong competition and the timing of annual price rises. It also reported 49,800 fewer mobile connections over the quarter. Behind those numbers is a much busier market. Dozens of smaller full-fibre networks have been built across the UK in recent years, giving many households more choice and keeping pressure on prices. What stays the same Virgin Media's full-fibre footprint, including the nexfibre network it co-owns, now reaches 9.4 million premises, and the company says Ofcom's latest data shows it had the lowest level of broadband complaints of any major provider. Existing customers' services and contracts are not changing as a result of the announcement. What it means if you are shopping for broadband More competition generally works in shoppers' favour, but which networks you can actually get depends on your postcode and even your street. Before renewing or switching, check which providers serve your address, compare the full contract cost including any mid-contract price rises, and look at recent complaint and reliability figures rather than adverts alone. CompareDirect tip: if your contract is ending soon, compare deals for your address first, then use what you find when talking to your current provider about a renewal price. Our separate guide, "Virgin Media pauses full-fibre upgrades: what it means for broadband customers", covers the four things to check before switching. Figures are from Virgin Media O2's third-quarter 2026 results; job-cut details were reported in the press. All wording is CompareDirect's own. This is general information, not financial advice. Photo: AI-generated illustration.