VMED O2 - comment
VMED O2 hasn’t yet launched new services on its upgraded Fibre to the Premises (FTTP) network upgrades. Only £100m of what we estimate at £1.7bn in upgrades (by FYE28) has been spent so far (1m of >16m households), but market patience is not infinite. The issues with billing and ordering systems will eventually iron themselves out, but VMO2 needs to launch a product soon to demonstrate the benefits of its investment. Further delays will exacerbate the weaker sentiment after the ratings downgrade, and spreads will widen.
Project Mustang: Virgin is spending £1.7bn between now and 2028 to upgrade 16.3m homes at £100 a home). The intention is to raise the network capacity now to remain competitive in future.