The two UK operators are said to be working on a deal that would lead to them sharing the cost of rolling out new ultrafast broadband network infrastructure.
According to a report in The Telegraph newspaper, Virgin Media and TalkTalk are discussing the sharing of “passive” infrastructure, which would allow TalkTalk to lay fibre-optics in Virgin Media’s underground ducts and vice versa. It has been noted that should TalkTalk reach a deal with Virgin which allows it to piggyback on the latter’s network, this could bring costs down sharply for the proposed fibre rollout by reducing the need to dig up pavements. In return, the report suggests Virgin Media could benefit from the partnership as it may enable it to accelerate its ongoing Project Lightning expansion programme by following TalkTalk into new territory.
With the talks said to be at an early stage and there is no guarantee that the any such deal will be forthcoming, The Telegraph noted.
In February, TalkTalk said it had agreed heads of terms with Infracapital with regards to the creation of an independent company in which TalkTalk would own 20% as part of plan to provide full fibre-based connectivity to more than three million premises in mid-sized towns and cities in the UK.
Source: http://www.csimagazine.com/csi/Virgin-Media-and-TalkTalk-reportedly-in-broadband-share-deal.php