Virgin Media O2 has unveiled plans to invest £700 million in its mobile network infrastructure in 2026, reinforcing its long-term commitment to strengthening digital connectivity across the United Kingdom. The large-scale investment will focus on expanding 4G and 5G capacity, improving network reliability, and extending coverage to meet the growing demand for high-speed data services.
Virgin Media O2 serves 46.7 million mobile phone customers and 5.8 million fixed line customers at the end of 2025.
Virgin Media O2 reported a strong financial performance in 2025, with Adjusted EBITDA less Capex rising 31.0 percent year-over-year to £1,645.5 million. The growth was largely driven by the impact of an agreement with Cellnex UK, which resulted in a £202.0 million right-of-use asset and lease obligation recorded in Q3 2024.
During 2025, the company maintained significant investment momentum, with property and equipment additions totaling £2,089.2 million as it continued upgrading its networks and services.
In the fourth quarter, Adjusted EBITDA less Capex increased 4.5 percent year-over-year to £391.5 million. The quarterly growth reflected lower property and equipment additions and reduced right-of-use asset additions, partially offset by a decline in Adjusted EBITDA.
The funding initiative aims to deliver stronger and more consistent connectivity in high-traffic areas such as city centers, sports stadiums, railway lines, and major road corridors. By targeting locations where network demand peaks, the operator seeks to ensure customers experience reliable mobile performance during critical moments, whether for streaming, remote work, gaming, or business communications.
Boosting Network Capacity and Speed
Mobile data usage on the O2 network has more than doubled over the past five years, driving the need for accelerated infrastructure upgrades. Virgin Media O2’s 2026 investment plan prioritizes expanding both 4G and 5G capacity to provide faster download and upload speeds across urban and suburban areas.
A key component of the strategy is the deployment of thousands of small cells to enhance localized coverage. These small cells are designed to reduce congestion in densely populated areas by improving signal strength and network efficiency at street level. The company will also continue rolling out advanced massive MIMO technology to significantly increase capacity and optimize broadband performance.
Energy efficiency forms another pillar of the investment strategy. Virgin Media O2 plans to retire legacy 3G infrastructure, reallocating spectrum and resources to more efficient 4G and 5G networks. This shift not only improves performance but also reduces operational energy consumption.
Expanding 5G Standalone and Nationwide Coverage
The operator is accelerating the rollout of its 5G+ standalone network, which enables lower latency, higher bandwidth, and improved reliability compared to non-standalone 5G deployments. Currently, Virgin Media O2’s 5G network reaches 87 percent of the UK population, and the 2026 investment will further expand this footprint while addressing connectivity gaps in underserved areas.
The standalone 5G network is expected to support advanced use cases such as smart cities, immersive digital experiences, IoT applications, and enterprise-grade connectivity solutions. By reducing network “not-spots,” the company aims to provide seamless digital experiences nationwide.
In addition, Virgin Media O2 is building on its collaboration with SpaceX to enhance rural connectivity. By leveraging satellite-based services, including those powered by Starlink, the operator is working to extend reliable mobile and data coverage to remote and hard-to-reach locations across the UK.
Strengthening Reliability and Customer Experience
For both consumers and enterprise customers, the network upgrades are expected to deliver fewer dropped calls, improved data speeds, and greater resilience during peak traffic periods. Enhanced infrastructure and modernized network architecture will also improve security and safeguard against service disruptions.
As digital adoption accelerates across industries and households, Virgin Media O2’s £700 million investment underscores its ambition to future-proof the UK’s mobile infrastructure. By expanding 5G standalone capabilities, increasing capacity, and integrating satellite connectivity, the company is positioning its network to support the next wave of digital innovation and connectivity demands.
FASNA SHABEER
