Virgin O2 agrees to acquire Russian-backed broadband provider Upp
Virgin O2 agrees to acquire Russian-backed broadband provider Upp
Virgin Media O2 has agreed to acquire Russian-backed broadband provider Upp, which Britain last year demanded be sold over security concerns.
Upp, which provides fiber optic internet in the east of England and the East Midlands, was owned by Luxembourg investment manager Letter One, a group backed by Russian oligarchs.
Among them was the billionaire co-founder of the Alfa Group conglomerate Mikhail Fridman, who was sanctioned by Britain after the Russian invasion of Ukraine.
Letter One was told by the government last December to get rid of Upp, fearing that the company’s property could pose “a risk to national security.”
While Virgin Media hasn’t disclosed exactly what it paid O2 for Upp, it is believed to be worth less than £100 million.
Network: Upp, which provides fiber optic internet in the east of England and the East Midlands, was owned by Luxembourg investment manager Letter One, a group backed by Russian oligarchs
Virgin Media O2 plans to resell it within a year to a joint venture called Nexfibre.
Upp specializes in ‘alternative networks’ and has 4,000 customers and offers broadband services at approximately 175,000 locations in England.
Lutz Schuler, CEO of Virgin Media O2, said the company has a ‘clear strategy to be the country’s biggest fiber challenger’.
The company is a telecom merger between the American group Liberty Global and the Spanish Telefonica.
Assembly Research’s Matthew Howett said: “The announcement could well be the first domino to fall when it comes to the purchase of an altnet by one of the major players.”