Virgin Media

2023 - 3 - 19

Sunday newspaper round-up: Bank of England, Virgin Media O2, THG (ShareCast)

Experts at Investec believe that the Bank of England will stand pat on rates when it meets this week due to financial stability concerns triggered by the ...

Former top Bank of England official David Blanchflower believes that the central bank should slash interest rates and stop selling Gilts in the aftermath of the turmoil in the banking sector. The latter is expected to be close to making its recommendations to THG's board public and is expected to push for the online retailer to move its shares to the premium segment of the main market. [- Sunday Telegraph](https://www.telegraph.co.uk/business/2023/03/18/bank-england-scrambles-assess-risk-new-financial-crisis/) At a meeting last week, officials at Threadneedle Street held talks with lenders, both large and small, to assess their risk profiles and asked them to provide breakdowns of their bond market investments. [- Guardian](https://www.theguardian.com/business/2023/mar/19/slash-interest-rates-and-stop-bond-sales-ex-policymaker-david-blanchflower-tells-bank-of-england) Inflation data out on Wednesday on the other hand was expected to decline to just below 10%, posing a dilemma for Bank. Nonetheless, the unusual intervention was a reflection of the degree of concern sparked by the failure of SVB and the situation at Credit Suisse. Cityfibre already reaches approximately 2.0m homes will full fibre brodband and hopes to reach 8.0m by 2025. Also discussed was whether they had any direct exposure to Credit Suisse, which was understood to be minimal. [ - The Sunday Telegraph](https://www.telegraph.co.uk/business/2023/03/18/virgin-media-o2-talks-3bn-bid-cityfibre/) [ The Sunday Times](https://www.thetimes.co.uk/article/activist-investors-take-thg-stake-and-pile-pressure-on-matt-moulding-0xh9wtdvm) Experts at Investec believe that the Bank of England will stand pat on rates when it meets this week due to financial stability concerns triggered by the collapse of Silicon Valley Bank and bailouts for Credit Suisse and First Republic Bank.

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Image courtesy of "thinkbroadband.com"

Virgin Media O2 rumoured to be interested in acquiring CityFibre ... (thinkbroadband.com)

The Telegraph is reporting Virgin Media O2 have been in discussions over a potential ยฃ3bn bid to acquire CityFibre, the UK's largest latent.

Doesnโ€™t this have the potential to mean less competition and and higher prices for consumers in city fibre only areas if V. A second substantial wholesale operator would be significant for Openreach in terms of competition, although Virgin would also wish to secure its position as a retail operator. The overlap with Virgin's existing RFoG (full fibre) network is quite limited, however Virgin Media has plans to upgrade its existing cable network to full fibre. CityFibre currently provides a wholesale platform for many smaller operators to re-sell its network, something Virgin doesn't provide for its broadband network at this time. Cityfibre have reporterdly built around 300,000 premises not currently available for ISPs to order; if those were all in non-Virgin Media areas, then the overlap may be lower than we expect, at around 60%. Virgin Media's existing RFoG (full fibre) footprint is over 1.3 million premises with CityFibre reaching 2.3 million.

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