The UK's biggest pending broadband consolidation deal moved into its final stretch this week, as the competition regulator published industry views on its provisional decision to oppose it.
What happened
On 6 November 2026 the Competition and Markets Authority (CMA) published responses to its interim report on the proposed acquisition of Substantial Group, owner of full-fibre network Netomnia, by nexfibre. Nexfibre is backed by InfraVia Capital and shares parent companies (Liberty Global and Telefónica) with Virgin Media O2 (VMO2). ISPreview values the deal at around £2 billion.
In its interim report the CMA provisionally found that the transaction was expected to result in a substantial lessening of competition in the wholesale supply of fixed broadband. A central part of its reasoning was a counterfactual in which Netomnia would instead have combined with CityFibre. Nexfibre has called that view "fundamentally flawed" and, according to ISPreview, said it had not submitted a remedy because none could address the CMA's counterfactuals.
Who said what
Several alternative networks, including Community Fibre, Gigaclear and Grain Connect, criticised the CMA's counterfactual or warned of a chilling effect on investment. Trooli stayed neutral but asked for a clear framework on how fibre networks can reach scale. CityFibre supported the CMA's provisional view, while the Greater Manchester Combined Authority said the deal risked weakening infrastructure competition in the region.
The commercial backdrop
Two days earlier, Liberty Global chief executive Michael Fries told investors the group remained committed to the deal, but that it would not build any more fibre on VMO2's balance sheet whatever the outcome. ISPreview reports that VMO2's third-quarter results set out about £800m of cost savings by 2029 and a halt to further fibre upgrades beyond existing commitments.
What happens next
The CMA's statutory deadline for a final decision is 15 December 2026. Formal responses from nexfibre and Netomnia themselves are expected to be published separately.
Why it matters financially
- Deal value: about £2 billion, as reported by ISPreview.
- Investment at stake: nexfibre says the deal would have unlocked a £3.5 billion UK investment and taken its full-fibre footprint to 8 million premises by the end of 2027, including upgrading 2.1 million Virgin Media premises from cable to fibre.
- Sector valuations: many altnets and their investors had expected approval to open the way to further consolidation. A prohibition would narrow the pool of likely buyers and could weigh on the value of other fibre networks.